Chinese factories slowly first sign the assessment of commercial wars

The president prevails over the rates that already wreaked away in the factories of Chinas.

Three weeks after a trade war that pushed the import prices on Chinese manufacturing goods at 145%, an official report on manufacturing activity indicated that in April, Chinese factories experienced the clearest monthly slowdown in more than a year.

The report, a survey of industrial companies published Wednesday by the National Bureau of Statistics, provides the first official indication of the way in which the American rates affect the Chinese economy. China responded to American prices with 125% prices on its own American goods.

Commercial trade threatens American and Chinese growth and potentially the world economy. The emerging signs of difficulties in the two countries have increased pressure on President Trump and Xi Jinping, the chief of Chinas, to conclude an agreement to break the dead end.

Neither Beijing nor Washington seem ready to blink. Chinas Ministry of Foreign Affairs published a video Tuesday, saying that the country refuses to fly to a tyrant. Mr. Trump, in An interview with ABC News On Tuesday, continued to repel, saying that China was tearing us away like Nobodys have ever torn us. He said he thought China would likely eat these prices, defying anxiety among consumers and businesses on the impact of import taxes he imposed.

On Tuesday, United Parlia Service announced that it would reduce 20,000 jobs and close 73 buildings this year. General Motors said he could no longer hold his previous forecasts for solid profits this year, citing Mr. Trumps' prices on imported cars and imported parts. Consumer confidence in the United States has fallen at its lowest levels in five years.

The CHINAS manufacturing purchasing managers fell fell at 49.0 in April, compared to 50.5 in March. A reading below 50 indicates a deterioration of the activity in the sector. The index was greater than 50 in the previous two months, driven by a bump in orders before the prices. The April figure was lower than the economists expected.

The surveys reading on new commands of goods for exports were at its lowest level from the COVID-19 pandemic, causing the overall index. In addition, a manufacturing employment gauge contracted at its lowest level since February 2024.

Zichun Huang, Chinese economist at Capital Economics, told customers in a note that the data suggests that the Chinese economy is under pressure while external demand is cool. Steps that the government takes to pump money in the economy should not fully compensate for the drag, she said. The capital economy provides that the Chinese economy will increase by 3.5% this year, unless the growth target of governments by 5%.

In a research report on Tuesday, Nomura Securities said that if Chinese exports to the United States have dropped by 50%, 5.7 million people in China could lose their job immediately. This number could reach 15.8 million workers once the long -term effects have crossed the economy.

Beijing undertook to support its economy during the trade war with the United States, with a long list of initiatives aimed at encouraging its inhabitants to spend more. Among the proposed ideas are local governments to increase subsidies for those who need it and to improve retirement services for retirees.

Chinese officials hope to stimulate internal expenses, which remained obstinately weak in the face of a real estate crisis which weighs on the country's economy. To compensate for this stagnation of consumption, the Chinese economy relied even more on exports.

On Wednesday, China adopted a law aimed at preserving the rights of private companies. The last years on security and control of the state have been at the expense of dynamism that has helped to propel China to become the second economy in the world.

Owners of private companies have complained that their economic interests and rights are often ignored in favor of government priorities and policies. At its nominal value, this law aims to alleviate some of these concerns.