Despite the looming threat of Donald Trump's tariffs this week, China's manufacturing activities expanded at its fastest pace in three months in February.
Production at Chinese factories returned to growth last month, thanks to higher new orders and purchase volumes, according to an official survey.
Beijing officials Manufacturing Purchase Manager Index The Statistics Bureau reported above the 50-point mark, which rose to 50.2 in February, up from 49.1 in January.
Zhao Qinghe, a statistician at the National Bureau of Statistics (NBS), said PMI data in February was supported by the factory reopening production after a spring festival holiday, when many people were temporarily closed.
Chinese officials are expected to discuss the state of the economy when they meet in Beijing for the annual parliamentary meeting on Tuesday, when Trump said he would launch an additional 10% tariff on Chinese imports.
These tariffs could dent demand for American Chinese products, which could instead lead China to induce unnecessary goods to Europe, pushing down European inflation and hurting European manufacturers.
“How much will the US raise tariffs next week,” said Zhiwei Zhang, chief economist at PinPoint Asset Management. [and] How much damage will China's export orders be causing?
