Official data showed that China's manufacturing activity remained slow for the second consecutive month in May.
China's National Bureau of Statistics has reported that the Purchasing Managers Index (PMI), an important indicator of industrial production, was again below 50 points. PMI being below 50 shows contraction or slowdown in the economy.
This decline is attributed to various factors, including rising trade tensions with the US and Europe, a prolonged downturn in the property sector, and insufficient market demand.
Weak exports and trade war with US blamed for slowdown
According to media reports, China's PMI was 49.5 in May, while this it was 49.0 in April. China’s manufacturing activity had fallen more than expected to a 16-month low in April, sliding into contractionary territory in April as the escalating trade war with the U.S. hurt bilateral trade. It remained almost same in May.
The reason for the slowdown in China's manufacturing activity is said to be weak exports and trade war with America.
After Trump became America's President again this year, relations between America and China have become tense over tariffs.
US President Donald Trump imposed a 145% tariff on goods coming from China and China imposed a 125% retaliatory tariff on American goods.
Earlier this month, both countries agreed to stop the high tariff rates imposed on each other for 90 days.
However, on Friday, Trump accused China of violating the agreement regarding tariffs. While China did not directly respond to the US claims, it appealed to the US to "stop discriminatory sanctions against China".