Workers produce clothing in a textile factory that supplies clothing at Shein, a fast fashion e-commerce company in Guangzhou in Guangdong province, southern China.
Jade High | AFP | Getty Images
China’s manufacturing activity has been signed for the third month in a row, sparking hopes for more stimulus measures to mitigate the impact of ongoing trade disruptions, an official survey showed.
The official Purchasing Managers Index (PMI) improved slightly at 49.5 in June and 49.5 in May, but stayed under 50 benchmarks, separating expansion from contraction. The figure is consistent with analysts’ forecast of 49.7 in Reuters vote.
The non-manufacturing PMI, including services and construction, rose from 50.3 in May to 50.5.
Chinese manufacturers have been working to deepen the price war, with increasing U.S. tariffs amid excessive supply and slow consumer demand, which has enabled them to export to the world’s largest consumer market.
Transportation from the country to the United States Slump 34.5% in May Starting a year ago, April exceeded 21% as exporters pivot to alternative markets to avoid eye-catching triple-digit tariffs, which were withdrawn after mid-May.
Chinese Prime Minister Li Qiang “Spendence is strong.”
Consumer prices have also fallen into a shrinking state this year. Reduced 0.1% in May A year ago.
Wholesale price or manufacturer price index specifications are seen The biggest drop since July 2023 In May, deflation that damaged manufacturing for more than two years was deepened. Profits of Chinese industrial companies fell 9.1% in May The clearest decline in seven months.
On Friday, China’s Commerce Department said Beijing had reached an agreement with Washington on more details of the existing trade framework, noting that China will review and approve qualified applications for export-controlled projects, while the United States will cancel a series of restrictive measures against China accordingly.
While the statement is seen as an encouraging sign that bilateral trade negotiations are underway, economists warn of the lack of details, including what standards Beijing will use to evaluate applications for exporting rare earth magnets.
“This emphasizes the hard and exhaustive negotiations of trade negotiations,” said Wendy Cutler, vice president of the Asian Institute of Social Policy.
exist A separate statement Last weekend, the Ministry of Commerce reiterated its objection to other countries seeking tariffs to harm China’s interests. “If this happens, China will not accept it and will take firm countermeasures to safeguard its legitimate rights and interests,” the statement said.
A private survey of China’s manufacturing activity conducted by Caixin Media and S&P Global will be held on Tuesday, and the event is expected to rise slightly from 48.3 last month to 49 in June, according to a Reuters poll.
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