China Business Network (CBN) recently reported that China’s manufacturing sector showed signs of strain in April, as the Manufacturing Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics, dropped to 49.0 percent – falling into contraction territory and signaling growing vulnerability to external shocks.
The April figure marked a 1.5 percentage point decline from March. Sub-index data revealed weakening in both supply and demand, a sharp drop in external demand, and persistently low price levels. On the production side, the production sub-index fell to 49.8 (down 2.8 points), while the new orders sub-index dropped to 49.2 (down 2.6 points). The new export orders sub-index declined sharply to 44.7 – a 4.3 point fall and the lowest level in nearly a year – highlighting the mounting effects of ongoing tariff disputes.
PMI readings across enterprise sizes all remained in contraction: large enterprises at 49.2, medium at 48.8, and small at 48.7, reflecting month-on-month declines of 2.0, 1.1, and 0.9 points, respectively.
China’s experts noted that effective domestic demand remains insufficient. To address this, they called for accelerating the issuance of local government special bonds and ultra-long-term special treasury bonds. They also urged the timely introduction of new policy-based financial tools and additional liquidity measures to boost domestic demand and stabilize foreign trade.
Source: CBN, May 1, 2025
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