China's Manufacturing Activity Rises at Fastest Pace in 3 Months as Us Tariff War Looms
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, an official factory survey showed on Saturday. The reading should reassure officials that fresh stimulus measures launched late last year are helping shore up a patchy recovery in the world's second-largest economy. Whether the upturn can be sustained remains to be seen amid a trade war that was kicked off by U.S. President Donald Trump's first salvo of punitive tariffs.
- China's manufacturing rebound may serve as a temporary reprieve for policymakers from the mounting pressure to address rising external shocks, but it is unlikely to stem the tide of declining exports and investment in the long term.
- How will China's efforts to maintain economic growth in the face of intensifying trade tensions with the US impact its ability to achieve its ambitious target of "around 5%" GDP growth for this year?