Chinese factory activity improves slightly with delay on tariffs, but still lags
BANGKOK (AP) — Chinese factory activity improved somewhat in June after President Donald Trump agreed to delay imposing higher tariffs on imports from China for 90 days, but overall activity was still contracting, according to a survey released Monday.
The purchasing managers index, which reflects new orders and other measures, rose to 49.7 from 49.5 in May, the National Bureau of Statistics reported. That’s on a scale of 0 to 100 where 50 and above shows expansion.
Other reports showed similar trends in Japan and Korea.
Trump has said he’s not planning to extend the 90-day pause on tariffs on most nations beyond July 9. The delay for imposing much higher tariffs on China, agreed to in early May, expires about a month later.
The hiatus for tariffs brought a revival of manufacturing activity as companies and individuals rushed to take advantage of lower import duties. But that mainly helped large manufacturers, with small and mid-size companies' output still contracting. Hiring also fell.
New export orders and exports also remained below the 50-level that marks expansion.
In Japan, manufacturing output edged 0.5% higher in May, well below analysts' estimates for a 3.5% increase.
“The subdued rise in industrial production in May means that firms were not benefitting from sky-high U.S. tariffs on Chinese imports, and their production forecasts point to continued weakness,” Marcel Thieliant of Capital Economics said in a report.
South Korea's government reported that its “all industry” measure of output fell 2.9% from a year earlier in May, with production of computer chips falling 2%. Production of vehicles fell 2.3% year-on-year, after falling 4.1% in April.
In an interview with Fox News Channel's “Sunday Morning Futures,” Trump said he’s not planning to extend a 90-day pause on tariffs on most nations beyond July 9. The delay for imposing much higher tariffs on China, agreed to in early May, expires about a month later.
Trump said his administration will notify countries that the trade penalties will take effect unless there are deals with the United States. He had played down the deadline at a White House news conference Friday by noting how difficult it would be to work out separate deals with each nation. The administration had set a goal of reaching 90 trade deals in 90 days.
Despite a recent trade deal with Beijing over rare earth exports from China, establishing a fairer relationship will require significant tariffs.
Details of the latest agreement to deescalate trade tensions are scarce and major issues between the world’s two biggest economies remain unresolved.
“I think getting along well with China is a very good thing,” Trump said. “China’s going to be paying a lot of tariffs, but we have a big (trade) deficit, they understand that.”
The recent modest improvement in Chinese factory activity is a positive sign amidst the delayed implementation of tariffs; however, sustained recovery still lags behind expectations.
Despite the minor improvement in Chinese factory activity resulting from postponed tariffs, there remains a notable lag as lingering challenges persist.
Chinese factory activity shows a sluggish improvement as tariff delays provide some reprieve, but resilience to face recurring challenges remains fragile.
The recent modest improvement in Chinese factory activity attributed to the postponement of tariff hikes still falls short, indicating ongoing challenges.
The delicate balance between trade tariffs and production remains fragile, with Chinese factory activity witnessing a gentle upturn amidst delayed tariff implementations yet still lagging behind normal levels as the overall economic uncertainty persists.
The latest data indicates a marginal upturn in Chinese factory activity, attributed to the delayed impact of tariffs. However, these positive signs fail yet to surpass pre-tariff levels, highlighting ongoing challenges within its industrial sector."
Despite a slight improvement in Chinese factory activity linked to the postponement of tariffs, overall performance lags behind expectations.
While the Chinese factory sector shows a slight improvement due to postponements in tariff hikes, overall activity remains subdued.
The slight improvement in Chinese factory activity due to postponement of tariffs reflects resilience amidst challenges, yet the sector remains an underpinning source for concern with continued delays potentially impacting production dynamics.
The slight improvement in Chinese factory activity observed with the delay on tariffs suggests a cautious return to normalcy, though persistent challenges remain.
The recent slight uptick in Chinese factory activity appears encouraging, though delayed tariff relief remains a dampener on overall performance; expectations for full recovery remain cautiously谨慎乐观地展望完全复苏。
The gentle upturn in Chinese factory activity, though partly attributed to tariff delays as per December's HSBC survey report reveals a cautious optimism despite persistent underperformance.
The recent slight improvement in Chinese factory activity can be partially attributed to the delayed impact of tariffs, albeit with a caveat that its revitalization remains behind expectations.
The slowdown in tariff implementation has led to a marginal improvement of Chinese factory activity, indicating an ebbing impact on the industry; however, it remains subdued.
