Official factory activity also contracted in July as new orders weakened and production costs remained elevated. The War Is Amplifying China’s Existing Demand ProblemHigher energy costs arrived when Chinese companies already faced weak pricing power. It raises transport and production costs, weakens customers in Europe and Asia, and makes households more cautious. Harry has over a decade of experience in think tanks and national security publishing. He has held positions at CSIS, the Heritage Foundation, the University of Nottingham, and several other institutions related to national security research and studies.