On May 9, 2025, a container reflected in puddles after rainfall at Yantian Port in Shenzhen, China, China, China and China.
Tingshu Wang | Reuters
BEIJING – China’s official gauge for manufacturing activities on Thursday pointed to worsening contractions in July, despite slowing economic growth and US trade tensions.
According to a Reuters poll, the index for manufacturing purchasing managers was 49.3 in July, leaving expectations for 49.7 missing.
China’s official manufacturing PMI is below the 50 mark, reflecting contraction rather than expansion since April.
Tensions between the US and China escalated in April, each imposing more than 100% tariffs on imports of other goods. Both sides agreed to roll back most of the 90-day additional missions in May.
The truce is set to expire in mid-August. Representatives from the world’s two biggest economies concluded their meeting in Stockholm this week without announcing an extension of the widely anticipated agreement.
China’s exports rose 5.8% year-on-year in June, more than offsetting a decline in exports to the US, customs data showed earlier this month.
At the high-level political voyage meeting on Wednesday, China’s top leaders have been increasing subsidies to encourage people to have more children, but China’s top leaders did not inform plans for a substantial new stimulus.
—CNBC’s Anniek Bao contributed to this report.
