China's Factory Slowdown Amid Trade Risks and Stimulus Measures

China's factory activity grew at a slower pace in December, per official data, despite stimulus and looming trade threats. The Purchasing Managers' Index dipped to 50.1 from 50.3. New and export orders rose, yet potential tariffs from US President Trump and economic challenges pose significant risks.

China's factory activity showed slower expansion in December, official data revealed on Tuesday, despite recent efforts to stimulate growth and increasing trade risks.

The National Bureau of Statistics reported that the Purchasing Managers' Index fell slightly to 50.1 from the previous month's 50.3. This marks the third consecutive month with readings above 50, signaling ongoing manufacturing expansion.

The downturn was mainly driven by a reduction in output, according to Capital Economics' Gabriel Ng. Although new orders surged to an eight-month high and export orders climbed due to US importers rushing to preempt potential tariffs from incoming US President Donald Trump, China's economic hurdles persist, including reduced consumption and a real estate crisis.

(With inputs from agencies.)