Archive · 5 Jun 2025
China Services Activity Expands Amid Trade Tensions
China's service sector grew faster in May, which is good news.
Businesses are doing a little better as they try to get new customers.
But, the trade fight with the US is hurting exports.
Although there is a truce, things are still not great due to tariffs.
Businesses are uncertain if there is a lasting agreement.
Now, leaders are focused on encouraging people to spend money at home because exports might slow down.
The manufacturing sector has had its worst slump since September 2022.
China's services activity expanded in May, according to a private survey.
The Caixin China services PMI rose to 51.1, indicating growth.
Employment in services grew, but deflationary pressure persisted.
Foreign demand declined due to the global trade conflict.
Focus is on whether policymakers will boost consumption to offset slower export demand.
- Who
- Caixin and S&P Global
- What
- China's services activity expanded at a faster pace in May.
- When
- May
- Where
- China
- Why
- Trade conflict with the US and uncertainty.
Trade Conflict Concerns
Economic Outlook
Impact of Tariffs
Trade Conflict Concerns
US tariffs threaten demand for exports.
Economic Outlook
China's services activity expanded despite trade tensions.
US-China Relations
Trade Conflict Concerns
Uncertainty due to US President's remarks.
Economic Outlook
Chinese economy is trying to stablize.
- Caixin China Services PMI (May)
- 51.1
- PMI above 50
- 29 months
- New Export Business
- Declined
Sources
US services sector contracts for first time in nearly a year as demand weakens
Service sector holds strong with growth of 58.8 in May: PMI
Services growth in May stays robust on global demand
US service sector unexpectedly contracts in May; inflation heats up
