Employees producing clothing at a textile factory that provides clothes for a fast e-commerce Shein company in Guangzhou in the Guangdong province, southern China.
Jade Gao AFP Getty images
The official survey showed that the Chinese production activity concluded the third month in a row, on Monday showed on Monday, fueling hopes for a larger stimulus to depreciate the impact of ongoing commercial interference.
The indicator of official purchasing managers (PMI) improved slightly to 49.7 in June of 49.5 in May, but remained below the 50-year extension of the expansion from contraction. This number was in line with the analysts' forecast of 49.7 in the Reuters survey.
In May, not producing PMI, which covers services and construction, increased to 50.5 from 50.3.
Chinese producers struggled with the deepening price war among abuse and slow consumer demand, tightened by the higher US tariffs, which attracted exports to the world's largest consumption market.
Shipments of the country to the USA in May it fell by 34.5% From a year ago and over 21% in April, because the exporters turned to alternative markets to avoid the increased triple tariff, which fell short before it was withdrawn in mid -May.
Chinese prime minister Li Qiang said in a speech at the key economic forum in Tianjin last week that Beijing increased efforts to increase domestic demand in what will make China a “Power of consumption”.
Consumer prices have also been in deflation this year, falling 0.1% in May from the year earlier.
Wareness price indicator or the manufacturer's price indicator saw The largest decrease from July 2023 In May, he deepens the deflation that has threatened the production sector for over two years. The profits of Chinese industrial companies fell by 9.1% in May, their The sharpest decrease in seven months.
On Friday, the Chinese Ministry of Trade announced that Beijing has reached an agreement with Washington on the further details of existing trading frames, noticing that China will check qualifying applications for the export of controlled positions, while the US properly cancel a series of limiting funds against China.
While the statement was perceived as an encouraging sign that bilateral commercial talks were progressing, economists warned that the lack of details left many doubts, including the criteria that Beijing would use to assess the use of rare lands to export magnets.
“He emphasizes how difficult and detailed commercial talks can be,” said Wendy Cutler, Vice President of Asia Society Policy Institute, and the latest development signaling both parties are working to ensure that the initial agreement agreed in Geneva will be implemented “in good faith”.
IN separate statement At the weekend, the Ministry of Trade repeated its opposition to other countries seeking tariff relief from the USA in every agreement that would threaten China's interests. “If this happens, China will not accept him and take strong remedies to secure their justified rights and interests,” said the statement.
According to the Reuters survey, a private survey on Chinese production activities conducted by Caixin Media and S&P Global, which is to improve slightly to 49 in June from 48.3 in the previous month.
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