China has struggled to boost growth amid tepid domestic demand and a prolonged real estate downturn, leaving exports as a key driver of growth.China has struggled to boost growth amid tepid domestic demand and a prolonged real estate downturn, leaving exports as a key driver of growth.
China’s factory activity expanded its its fastest pace in three months to 50.8in February, a private-sector survey showed on Monday.
The seasonally adjusted Caixin/S&P Global manufacturing purchasing managers index beat the Reuters poll forecast of 50.3.
The private-sector manufacturing PMI has stayed above the 50 threshold that separates expansion from contraction since last October. But it edged lower to 50.1 in January, from 50.5 last December and 51.1 last November.
This private survey reading followed the official manufacturing PMI released on Saturday, which indicated that China’s factory activity expanded last month at the fastest pace in three months.
The official PMI rose to 50.2 in February from 49.1 in January, according to the National Bureau of Statistics. The non-manufacturing PMI, which includes services and construction, also climbed to 50.4 from 50.2 in January.
The figures came as economists flagged that fresh U.S. tariffs could pressure the country’s manufacturing activity and dent exports this year as exporters concerned about tariffs coming into effect had rushed to front-load their shipments.
U.S. President Donald Trump last week announced to impose additional 10% tariffs on Chinese goods — on top of the 10% he levied on China on Feb. 4.
Trump had threated 60% tariffs on China on his campaign trail.
The additional tariffs are scheduled to take effect on March 4, coinciding with a high-profile annual gathering in Beijing where Chinese authorities are expected to unveil economic targets and fresh policy support.
The leadership is expected to acknowledge a significant softening in domestic demand while revealing highly anticipated details on fiscal stimulus aimed at shoring up growth in the face of heightened trade tensions.
China’s commerce ministry urged the U.S. on Friday to resume negotiations as soon as possible, while warning of retaliation.
The world’s second-largest economy has struggled to boost growth amid tepid domestic demand and a prolonged real estate downturn, leaving exports as a key driver of growth.
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