China’s manufacturing activity has reached a two-year low, in April, as trade with the US has been impacted with the trade war between the two companies. Data shows that manufacturing activity has fallen into contractionary territory. Economists say that the tariffs have severely disrupted trade flows between the US and China. This comes as there has been little evidence of any progress being made in terms of the two countries agreeing on a trade deal. Experts believe that the Chinese government will have to increase its fiscal spending by at least 2 trillion yuan to counter the loss in GDP from the tariffs.
https://www.cnbc.com/2025/04/30/chinas-factory-activity-drops-to-a-near-two-year-low-in-april-as-trade-tariffs-bite.html
A two-year low in China’s manufacturing is a big deal, especially with how connected the U.S. and Chinese economies are. It really shows how serious the impact of the trade war has been. If China has to spend that much just to soften the blow, it’s clear that these tariffs are hurting both sides more than helping.
ReplyDeleteI’m wondering how this dip in Chinese manufacturing will affect global supply chains, especially for tech and consumer goods. Could this push companies to shift production to other countries, or will they just ride it out and wait for a deal?
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