Trade war cuts into China's high-tech production

US tariffs slow output growth for robots and integrated circuits

20180914N China factory robot (Reuters)

China's output of factory robots has slowed since May, when year-on-year growth topped 30%.

ISSAKU HARADA, Nikkei staff writer

BEIJING -- Washington's tariffs landed a blow on China's industrial production in August, with figures released Friday showing a slide in output growth for targeted high-tech items like robots and integrated circuits.

As recently as May, China's industrial robot production was rising by over 30% on the year. But since June -- the month before the products were targeted for additional 25% tariffs -- growth has been stuck in the single digits, including 9% for August. Integrated circuits likewise became targets in August, and their output grew just 5.8% that month, half the July figure. Production of automobiles began shrinking in July, and the decline widened to 4.4% in August.

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