China Manufacturing Activity Soars Amid Tariff Uncertainty

China’s manufacturing sector saw a notable expansion in February, with production returning to growth after the spring festival holiday. The official purchasing managers’ index rose to 50.2, surpassing the stagnation point of 50.

The rebound was attributed to higher new orders and purchase volumes. China officials are set to discuss the economy during an annual parliamentary meeting on Tuesday, coinciding with US President Donald Trump’s announcement of a 10% tariff increase on Chinese imports.

The tariffs could impact demand for Chinese goods in the US and potentially alter trade patterns towards Europe, where it may reduce European inflation and harm manufacturers. Experts caution that the full extent of the damage remains uncertain.

Source: https://www.theguardian.com/business/2025/mar/02/chinese-manufacturing-surges-despite-threat-of-higher-trump-tariffs