China’s manufacturing activity expanded at its fastest rate in three months in February, despite concerns surrounding potential tariffs imposed by Donald Trump this week.
The brief resurgence in factory production was attributed to increased new orders and purchase volumes, as reported in an official government survey.
China’s official manufacturing purchasing managers’ index, as reported by the National Bureau of Statistics, rose to 50.2 in February compared to 49.1 in January. This increase indicates growth in the sector as the index surpasses the critical 50-point mark, which signifies stagnation.
Zhao Qinghe, a statistician from the National Bureau of Statistics, stated that the February PMI was supported by factories resuming operations after the Spring festival holiday, during which many temporarily closed for celebrations.
The Chinese officials are expected to discuss matters related to the country’s economy during their annual parliamentary meeting on Tuesday, which also coincides with the date when Trump has stated an additional 10% tariff on Chinese imports will take effect.
These additional tariffs may lead to decreased demand for Chinese products in America and could prompt China to redirect surplus goods to Europe, possibly impacting European inflation and potentially damaging Europe’s manufacturing sector.
According to Zhiwei Zhang, the chief economist at Pinpoint Asset Management, the degree to which the US will raise tariffs this week and the resulting impact on China’s export orders remains to be seen.
Source: https://www.theguardian.com/business/2025/mar/02/chinese-manufacturing-surges-despite-threat-of-higher-trump-tariffs
