March 1, 2025 — China’s manufacturing sector showed signs of recovery in February, with factory activity expanding for the first time in months, according to the latest Purchasing Managers’ Index (PMI) data. The official manufacturing PMI rose above the 50-point threshold, indicating growth, as domestic demand improved and production picked up. The positive momentum suggests that government stimulus measures and industrial adjustments may be supporting economic stabilization.
Despite the rebound, concerns remain over external risks, particularly in the global trade environment. Geopolitical tensions, potential tariff measures from major trading partners like the U.S., and weaker global demand could pose challenges for China’s export-driven economy. Former U.S. President Donald Trump has hinted at possible tariff hikes on Chinese goods, a move that could disrupt trade flows and raise costs for businesses and consumers. At the same time, a recent survey indicates that American consumers are becoming increasingly pessimistic about the economic outlook, citing inflation concerns and uncertainty about future trade policies. If U.S. demand weakens further, it could have ripple effects on China’s exports.
(By Ziqi Qin)
(Ref: https://www.bloomberg.com/news/articles/2025-03-01/china-factory-activity-returns-to-expansion-but-trade-risks-grow)