China’s economy is recovering from the blow of Covid-19 (Figure 1). However, the headline growth figure disguises the fact that some parts of the Chinese economy are not recovering nearly as well as others. China’s National Bureau of Statistics (NBS) breaks its economy down into three main sectors: Agriculture, Production and Services. China’s rebound has been driven mostly by production, while the services sector has not done as well (Figure 2). This matters because services (i) are a better indicator of consumer demand than production, (ii) represent 48% of China’s GDP and (iii) employ 46% of its labor force. ... (full story)