China's factory activity has been on a five-month decline, as per the latest data by the country’s National Bureau of Statistics, which showed its purchasing manager’s index (PMI) in the manufacturing sector rose to 49.4 in August.
The data, released on Sunday, also showed indices measuring manufacturing, new orders, and raw material inventory edge up, although the index measuring employment had dropped slightly.
In July, the country’s PMI was measured 49.3. PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction.
The survey results came weeks after US President Donald Trump extended a 90-day pause in sharp hikes in import duties on China. However, uncertainty remains over tariffs on exports to the US as the world's second-largest economy battles a property sector downturn, rise in the jobless rate, and flooding from torrential seasonal rains that have disrupted business activity in parts of the country.
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But, a senior statistician from the National Bureau of Statistics, Zhao Qinghe, pointed out to the silver lining, saying there has been improvement in China’s overall economic sentiment as the purchasing managers index in manufacturing, the non-manufacturing PMI and the overall PMI all saw growth in August.
Meanwhile, China's Ministry of Commerce said in a statement on Saturday that its international trade representative, Li Chenggang, had visited the US last week to engage in talks with American officials on implementing the consensuses of their state leaders and trade talks between both sides, as well as economic and trade ties between the two countries.
Having met with business representatives during his trip, Li stressed that China and the US should adhere to the principles of mutual respect, peaceful coexistence and win-win cooperation, managing differences and expanding cooperation through equal dialogue, the ministry said.
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