China Manufacturing Hits 3-Month High but Us Tariff War Clouds Outlook
China's manufacturing activity expanded at the fastest pace in three months in February as new orders and higher purchase volumes led to a solid rise in production. The official purchasing managers' index (PMI) rose to 50.2 in February, beating analysts' forecasts, but doubts remain about whether this upturn can be sustained amid a trade war with the US. Chinese policymakers are expected to announce economic targets and fresh policy support next week, which investors will watch closely for signs of further support for the struggling property sector.
- The resilience of China's manufacturing sector in the face of global headwinds could serve as a model for other countries facing similar challenges, highlighting the importance of domestic policy interventions in supporting growth.
- Can China's policymakers successfully balance economic stimulus with the need to address rising debt levels and financial vulnerabilities, or will these efforts exacerbate existing problems?