By AP November 30, 2025, 9:27:53 AM IST
China’s factory activity contracted for the eighth straight month in November, an official survey showed Sunday, highlighting persistent headwinds for the economy despite a recent U.S.-China trade truce.
The National Bureau of Statistics said the official manufacturing purchasing managers index rose slightly to 49.2 in November from 49.0 in October. Readings below 50 indicate contraction; the result matched analyst expectations.
A U.S. tariff cut earlier this month could make Chinese exports more competitive in the U.S. market, but it is too soon to tell if exports have regained momentum following the truce. U.S. President Donald Trump announced the tariff reduction after meeting Chinese leader Xi Jinping in South Korea on Oct. 30, raising some optimism for exports and manufacturing.
Domestic strains remain acute. A prolonged slump in China’s property market, falling home prices and weaker real estate investment have weighed on consumer confidence. Intense price competition across sectors, including autos, has further squeezed businesses.
Economists say more policy support is needed to bolster growth, though officials appear to be holding back. “Policymakers appear to be delaying further policy support,” Lynn Song, chief economist for Greater China at ING, wrote earlier this month.
Measures introduced earlier—such as trade-in subsidies for home appliances and electric vehicles—are being phased out, and analysts warn sales and demand may decline as those supports fade. “The fading boost from the consumer goods trade-in policies may be weighing on domestic demand for manufactured goods and signals on domestic demand have been mixed,” said Zichun Huang, China economist at Capital Economics.
Chinese authorities have set an around-5% growth target for 2025. The economy expanded 4.8% in the July–September quarter. Song noted that achieving this year’s target is “likely to require minimal additional support.”
