China's Manufacturing PMI Rises to 12-Month High amid US Tariff Tensions

China's manufacturing sector is experiencing its fastest growth in a year, with the official Purchasing Managers' Index (PMI) rising to 50.5 in March, up from 50.2 in February, signaling expansion in factory activity despite ongoing trade tensions with the United States. The increase in production and new orders suggests that Beijing's fiscal measures are beginning to yield positive results, even as the employment index remains low at 48.2. Experts note that while the PMI results are encouraging, the looming threat of new U.S. tariffs may still impact future growth. The expansion follows a contraction in January and reflects resilience in exports and manufacturing supply amidst geopolitical challenges. Economists caution that the current uptick may not fully shield the sector from potential economic slowdowns, particularly with a weakening services sector. Overall, the data presents a cautious optimism for China's economic recovery as it navigates through external pressures.