Key Chinese economic indicator retains positive direction amid Trump tariff threat

Factory activity in China maintained its positive direction in November, reflecting the impact of Beijing’s stimulus policies as it seeks to hit its growth target for the year.

The official manufacturing purchasing managers’ index (PMI) – a survey of sentiment among factory owners – rose to 50.3 in November compared with October’s reading of 50.1, the National Bureau of Statistics said on Saturday.

The index had contracted for five straight months before October.

A reading above 50 shows an expansion of economic activity, while a reading below 50 means contraction.

Beijing has set a growth target for the year of around 5 per cent and has announced a series of measures in recent months to help reach that goal.

Zhang Zhiwei, chief economist at Pinpoint Asset Management, said measures to ease fiscal and monetary policy announced in late September had helped stabilise the economy, “but the outlook for 2025 remains unclear”.

Zhang added that investors are waiting to see what further stimulus measures will be announced while the prospect of a trade war with the United States once Donald Trump returns to the White House is causing investors to delay making decisions.