Archive · 31 May 2025
China Manufacturing Shrinks Again Despite US Trade Truce
China's factories didn't do well in May, even though the country made a deal to stop fighting a trade war with the US.
The Purchasing Managers' Index, which measures how much stuff factories make, showed things were shrinking instead of growing.
Some parts of the economy, like the service sector, were still doing okay.
The Chinese government wants the economy to grow, but some experts think that will be difficult.
The US President said China broke their trade deal.
China's manufacturing activity contracted in May for the second month.
The Purchasing Managers' Index (PMI) was 49.5 in May, below the 50-point threshold.
The non-manufacturing PMI, measuring services, decreased to 50.3.
The US and China agreed to a temporary pause in tariffs.
US President Trump accused China of violating the trade deal.
- Who
- China's manufacturing sector
- What
- Activity contracted for the second month
- When
- May
- Where
- China
- Why
- Despite a trade truce with the United States
China View
US View
Trade Deal Compliance
China View
China has not violated the trade deal.
US View
China has violated the trade deal.
- May PMI
- 49.5
- April PMI
- 49
- Non-manufacturing PMI
- 50.3
- Economic Growth Target
- 5%
