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African News Herald > Blog > Business > China’s Manufacturing Grows Despite Economic woes
Business

China’s Manufacturing Grows Despite Economic woes

ANH Team
Last updated: March 2, 2025 12:21 pm
ANH Team
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China’s Manufacturing Sector Sees Growth in February Despite Economic Challenges

Official data released on Saturday revealed that China’s manufacturing activity rebounded in February after a decline in the previous month.

The recovery comes at a crucial time for Beijing, as the economy faces challenges such as weak domestic demand and trade tensions with the United States.

With the Purchasing Managers’ Index (PMI) rising to 50.2 in February, surpassing the 50-point threshold for growth, there is a sense of relief in the industrial sector. This improvement follows January’s figure of 49.1, which saw a contraction in factory output for the first time in four months.

NBS statistician Zhao Qinghe attributed the growth in February to businesses gradually resuming operations after the Chinese New Year holiday.

President Xi Jinping has acknowledged the challenges faced by China’s economy, with the government set to discuss strategies to navigate through further tariff hikes and trade pressures during the upcoming “Two Sessions” meetings.

Recent announcements by President Donald Trump regarding additional tariffs on Chinese imports have raised concerns among analysts about the impact on China’s export-driven economy. Zhiwei Zhang, chief economist at Pinpoint Asset Management, highlighted the uncertainty surrounding future tariff increases and their potential damage to China’s export orders.

Despite these uncertainties, the modest expansion in the non-manufacturing PMI, which measures activity in the services sector, provides some optimism for the overall economic outlook.

See also  Nippon's shares reflect uncertainty as questions remain after Trump backs US Steel bid
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