China’s economy has once again defied expectations. According to Reuters, citing the National Bureau of Statistics, the country's manufacturing activity expanded at its fastest pace in a year in March, an encouraging development amid ongoing global uncertainty.
The first month of spring turned out to be a positive one for China. Despite escalating trade tensions with the United States and ongoing domestic challenges, the world's second-largest economy posted its strongest manufacturing data in a year.
China's official Purchasing Managers' Index rose to 50.5 in March, the highest level since March 2024. In February, the PMI stood at 50.2. Meanwhile, the non-manufacturing PMI, which covers services and construction, climbed to 50.8 from 50.4.
According to analysts, a pickup in new orders is fueling the rebound in manufacturing, offering China a brief reprieve as trade tensions with Washington escalate. Still, some experts warn that the boost may be short-lived. The concern stems from President Donald Trump's push for new tariffs, which he claims are necessary to correct the trade imbalance between the United States and China.
At the same time, China's official PMI figures show rising infrastructure investment. In this environment, exports have remained relatively resilient despite moderating GDP growth. Preliminary forecasts from Beijing suggest that China's GDP will grow by 5% in 2025.
In late February, Chinese President Xi Jinping acknowledged numerous headwinds and structural challenges facing the national economy. Xi attributed many of these problems to unfavorable external conditions.
