China Export: According to a monthly survey by Chinese factory managers released on Wednesday, high tariffs on the US import of Chinese products are overshadowing the world’s second largest economy. The official survey conducted by China Federation of Logistics and Purchaseing shows that export order has declined in April. Let us tell you that there is a deadlock between Beijing and Washington following the order of a combined tariff of up to 145 percent on Chinese goods by US President Donald Trump. China has imposed a tariff of up to 125 percent on US products with some discounts.
PMI came at 16 months low
The official manufacturing Purchasing Manager Index (PMI) fell from 50.5 to a 16 -month low of 49.0 in March. In a private survey conducted by Financial Information Group Caixin, it has fallen from 51.2 to 50.4. Jichun Huang of Capital Economics said in a report, “The sharp decline in PMI extends the impact of tariffs due to negative emotion effects, but it still suggests that China’s economy is coming under pressure due to low external demand.”
Tariff increases with the intention of starting manufacturing in America
Earlier this week, senior Chinese economic authorities held a conference, where they demonstrated its ability to support Beijing’s support and tariff’s impact for the economy. In 2024, the economy grew at a solid annual pace of 5 percent and the ruling Communist Party has targeted the same level this year. But this was before Trump extending his trade war, in which more tariffs were made for the purpose of forcing manufacturers to resume manufacturing in the United States.
Market optimism has become very weak
Overall, in April, the expansion in supply and demand slowed, the export stopped and the employment decreased slightly. The manufacturers demanded to reduce stock, logistics delayed and prices remained under pressure. The Caxin report said, “Market optimism has weakened significantly.”
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