China’s manufacturing activity contracted for a third straight month in June, shown in an official survey on Monday, which expects more stimulation to reduce the impact of ongoing trade disruption.

The official purchasing managers’ index (PMI) improved slightly from 49.5 to 49.7 in May in June, but extended from the contraction in detail from 50-Benchmark. The figure was in line with analyzes of analysts of 49.7 in a Reuters Poll.

Non-construction PMI, including services and construction, increased from 50.3 to 50.5 in May.

Chinese manufacturers are struggling with a deep price war between the brightness of the supply and the demand of the dull consumer, extended by the higher American tariffs, dwarfing its exports to the world’s largest consumption market.

Country shipment for America 34.5% fall in May A year ago and in April more than 21%, as exporters published an eye-water triple-decit tariff in alternative markets, briefly kicked before rolling back in mid-May.

Chinese Premier Lee Kiang had last week said in an address on a major economic platform at Tianjin that Beijing was carrying forward efforts to promote domestic demand to China. “Consumption powerhouse.”

Consumer prices have also been kept in deflation this year, 0.1% fall in May From a year ago.

A gauge on bulk prices, or manufacturer price index, saw The biggest decline from July 2023 In May, deepening an deflation that has affected the manufacturing sector for more than two years. In May, the profits of Chinese industrial firms declined by 9.1% Fast decline in seven months,

On Friday, the Chinese Ministry of Commerce said that Beijing had reached an agreement with Washington on further details of the existing trade structure, given that China would review and approve the eligible applications for the export of controlled goods, while the US would likewise cancel a series of restrictive measures against China.

While the statement was seen as an encouraging indication that bilateral trade talks were progressing, economists warned that the lack of details had left a lot in suspicion, in which Beijing used the criteria to evaluate the application for the export of rare earth magnets.

Vice President of the Asia Society Policy Institute Wendy Cutler said, “How difficult and detailed trade talks can be,” the Asia Society Policy Institute Vice President Wendy Cutler said, the two sides are working to ensure that the initial deal in Geneva is working to ensure the latest development signal. ,

One in Separate details Over the weekend, the Ministry of Commerce reiterated its protest against other countries seeking tariff relief with the US in any deal that would compromise on China’s interests. The statement said, “If such a situation happens, China will not accept it and will take firmly counters to protect its valid rights and interests.”

A private survey on China’s manufacturing activity organized by Caixin Media and S&P Global is scheduled on Tuesday, which is expected to improve slightly from 48.3 to 49 in June in the previous month, according to a Reuters Pol.

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