Amidist the trade war between the US and China, export orders from China slowed in April. The official manufacturing purchasing managers’ index fell to a 16-month low of 49.0 from 50.5 in March.
The high tariffs on US imports of products from China seem to be taking a toll on the world’s second-largest economy. According to the monthly surveys of Chinese factory managers released on Wednesday, export orders slowed in April, with Beijing and Washington in a standoff after US President Donald Trump ordered combined tariffs of up to 145 per cent on Chinese goods.
China has retaliated with up to 125 per cent on US products, with some exemptions. It has also taken additional countermeasures, which include putting tighter restrictions on exports of some strategically important minerals used for high-tech products such as electric vehicles.
The official manufacturing purchasing managers’ index fell to a 16-month low of 49.0 from 50.5 in March. That’s on a scale where 50 marks the break between expansion and contraction, reports AP.
The sharp drop in the PMIs likely overstates the impact of tariffs due to negative sentiment effects, but it still suggests that China’s economy is coming under pressure as external demand cools
Earlier, senior Chinese economic officials in a news conference emphasised Beijing’s capacity to do more to counter the impact of the tariffs as they showcased its support for the economy.
Before Trump escalated the tariff war, China had set a target for growth at about 5 per cent this year, which was similar to the growth it achieved last year.
Moreover, China’s Foreign Ministry has shared a video on X, urging the international community to stand up to America’s “bullying”.
In its video, Beijing also mentions that the US once accused Japan of dumping semiconductors, which ended up crushing companies like Toshiba. Later, Tokyo was forced to sign the Plaza Accord.
The video also accused the US of breaking up France’s industrial giant Alstom, which it claims ‘robbed the country of a national champion’.
