Factory activity in China experienced a significant downturn in April, reaching a near two-year low. This decline is attributed to the impact of tariffs imposed by President Trump, which have negatively affected trade between China and the United States.
The nation's purchasing managers' index (PMI) fell to 49.0 in April, according to data released by China's National Bureau of Statistics on Wednesday. This is below the 50-level threshold, indicating contraction for the first time since January. Analysts had expected a contraction of 49.8.
China's government is implementing fiscal stimulus measures, but economists suggest these may not fully compensate for the decline in exports. Despite trade tensions, Beijing maintains its target of around 5% GDP growth for the year.