China’s Factory Activity Slumps as US Tariffs Take Effect

Official data shows that new export orders dropped to the lowest level—excluding the COVID-19 disruptions—in 13 years.

Workers work on a production line at a factory in Suqian, Jiangsu Province, China, on April 9, 2025. China Daily via Reuters

China’s factory activity shrank more than expected in April following two months of recovery, a survey showed on Wednesday, suggesting the country’s sprawling manufacturing industry is beginning to feel the impacts of the ongoing trade war with the United States.

The country’s official purchasing managers’ index (PMI) declined to 49 in April versus 50.5 in March, according to the National Bureau of Statistics of China (NBS). The reading marked the lowest since December 2023 and missed a Reuters experts poll’s median forecast of 49.8.