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?
ReplyDeleteI agree that that the trade war has impacted both America and China. From my understanding, Chinese manufacturing declining can hurt the United States because they are one of our top trading partners and this can decrease income for many American businesses that export goods to China because there will be a reduce in demand. This also affects China because there is a reduce in exporting goods (electronics, machinery, and textiles). This is a great topic because I need to further educate myself on the matter
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