China’s Factory Activity Growth Hits 3-Month High Amid Tariff Uncertainty
China's factory activity expanded at its fastest pace in three months to 50.8 in February, according to a private-sector survey, as millions of migrant workers returned to work after an extended Lunar New Year holiday. The seasonally adjusted Caixin/S&P Global manufacturing purchasing managers' index beat expectations and accelerated from 50.1 in January and 50.5 last December. This growth is attributed to "demand strengthened from foreign clients" due to U.S. importers front-running tariffs.
- The escalating trade tensions and potential countermeasures from Beijing could further disrupt China's manufacturing sector, which has already faced challenges related to domestic demand and a prolonged real estate downturn.
- What impact will the upcoming government stimulus plan unveil at the National People's Congress have on China's economic recovery in 2025, particularly with regards to addressing persistent disinflationary pressures?