China's factory activity contracts in May, but there are signs of improvement
BEIJING (AP) — China's factory activity contracted in May, according to an official survey released on Saturday, although the decline slowed from April as the country reached a deal with the U.S. to slash President Donald Trump's sky-high tariffs.
China's purchasing managers index rose from 49.0 in April to 49.5 in May, the National Bureau of Statistics said. PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction.
Meanwhile, the manufacturing index showed growth in the sector, although the index measuring new orders remained under 50 despite some improvement.
National Bureau of Statistics senior statistician Zhao Qinghe said some companies with U.S. business reported accelerated resumption of foreign trade orders, and there was an improvement in import and export conditions.
The U.S.-China deal, reached earlier this month, cuts Trump's tariffs from 145% to 30% for 90 days, creating time for negotiators from both sides to reach a more substantive agreement. China also reduced its taxes on U.S. goods from 125% to 10%.
But the remaining tariffs are still higher than they were before Trump took office, and businesses and investors face uncertainty about whether the truce will last.
Trump said Friday that he will no longer be 'Mr. NICE GUY' with China on trade, declaring in a social media post that the country had broken an unspecified agreement with the United States.
He later said in the Oval Office that he will speak with Chinese President Xi Jinping and 'hopefully we'll work that out,' while still insisting China had violated the agreement.
Over the past week, tensions between Beijing and Washington also intensified after the U.S. said it would start revoking visas for Chinese students studying in the country. China has lodged a protest with the U.S. over the matter, calling the decision unreasonable.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Washington Post
32 minutes ago
- Washington Post
Trump says Gabbard was 'wrong' about Iran and Israeli strikes could be 'very hard to stop'
WASHINGTON — President Donald Trump said Friday that his director of national intelligence, Tulsi Gabbard , was 'wrong' when she previously said that the U.S. believed Iran wasn't building a nuclear weapon, and he suggested that it would be 'very hard to stop' Israel's strikes on Iran in order to negotiate a possible ceasefire.
Politico
34 minutes ago
- Politico
Israel presses ahead with strikes as Trump's 2-week deadline looms
Israeli officials insisted Friday that they will keep up their bombing campaign against Iran, even as President Donald Trump has given Tehran a two-week deadline to come to some sort of diplomatic deal that reins in its nuclear program. Israel's ambassador to the United Nations, Danny Danon, laid out his country's case at the U.N. Security Council, facing off Friday with Iranian representatives who urged the world to stop the Israeli strikes. 'Israel will not stop. Not until Iran's nuclear threat is dismantled, not until its war machine is disarmed, not until our people and yours are safe,' Danon declared. The Israeli assertions highlight how Trump's statement that he'll decide 'in the next two weeks' whether to strike Iranian nuclear sites provides an opportunity to Israel as much as it puts pressure on Iran. For Iran, it's two weeks to come to some sort of diplomatic deal with the U.S. that constrains its nuclear, and possibly other, programs. For Israel, it's a focused timeframe to do as much damage as it can to Iran's nuclear and broader military infrastructure before the U.S. may pressure it to accept a diplomatic solution. The more damage Israel does, the more it could weaken an enemy and improve the odds that Iran will capitulate to U.S. demands in the diplomatic process. The strikes themselves couldthreaten the survival of Iran's Islamist regime. Trump told reporters on Friday that he wasn't about to push Israel to halt its assault in Iran while he weighs what the U.S. should do. 'It's very hard to make that request right now,' Trump said. 'If somebody is winning, it's a little bit harder to do than if somebody is losing, but we're ready, willing and able, and we've been speaking to Iran, and we'll see what happens.' A senior administration official, granted anonymity to speak about the president's thinking, said 'everything is still on the table.' 'This is about giving this a little time and seeing if things look any different in a couple weeks,' the official said. Trump's 'two-week' window was delivered Thursday by press secretary Karoline Leavitt, who said, quoting Trump, that his delay in determining whether to join Israel's attack on Iran was 'based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future.' Trump often says he'll make decisions in two weeks, only to extend his deadline again or never follow through. Still, Israel and Iran appear to believe the next two weeks will be a crucial phase. Iranian officials showed up for nuclear talks with European officials on Friday in Geneva; Israel pressed ahead with its bombing campaign against Iran, which is responding with missiles. Iranian officials met Friday with European envoys in Geneva in an attempt to revitalize the diplomatic process. The talks ended on an ambiguous note. Iranian officials have said their participation in future talks would hinge on Israel stopping its attacks. Some European representatives said talks should continue regardless, even as they urged both sides to avoid escalation. 'We invited the Iranian minister to consider negotiations with all sides, including the United States, without awaiting the cessation of strikes, which we also hope for,' French foreign minister Jean-Noel Barrot said. For Israel, the most critical, but perhaps toughest, official objective is eliminating Iran's nuclear facility at Fordo. That facility is buried deep underground, and Israel has been hoping Trump will enter the fight and use special, massive U.S. bombs to destroy it. There are concerns, however, including among Republicans, that Iran could retaliate against U.S. assets if America enters the conflict on any level, dragging America into another Middle Eastern war. Trump campaigned on avoiding such wars. Israeli Prime Minister Benjamin Netanyahu has hinted that Israel has means to destroy Fordo on its own. It's not clear what those methods could involve, but Israel has significant intelligence operations inside Iran and it has often surprised even Washington with its capabilities. Either way, current and former Israeli officials said they saw no reason for Israel to back off its strikes now, despite calls for deescalation from some world capitals. The more Israel degrades Iran's capabilities, the less able Tehran will be to mount retaliatory attacks on Israel or the United States, should the latter choose to enter the war. From the beginning, 'the Israeli planning was based on the assumption that we have to do it alone,' said a former Israeli diplomat familiar with the situation. The person, like others, was granted anonymity to discuss highly sensitive issues. It's unclear whether there is any deal with Iran that Israel would deem strong enough. There is tremendous distrust of Iran's Islamist regime within Israel's security establishment, leading to a sense that Iran would cheat on any deal. Another unsettled question is whether a deal with Iran will cover only its nuclear program or also curb its ballistic missile initiative and support for proxy militias in the region. Some analysts have argued that Netanyahu decided to begin attacking Iran last week because he was worried earlier nuclear talks between Iran and the Trump administration would yield too weak a deal. If new efforts at diplomacy yield fruit, Trump could pressure Netanyahu to accept whatever deal emerges, potentially even by threatening to withhold weapons and other equipment Israel needs to defend itself against Iran. The war is costly for Israel, which has been fighting on multiple fronts — in particular against Hamas militants in the Gaza Strip — since October 2023. As one Israeli official said, Iranian missile attacks feel like 'Russian roulette' to Israeli citizens.
Bloomberg
34 minutes ago
- Bloomberg
Harvard Nears ‘Mindbogglingly' Historic US Deal, Trump Says
By and Anika Arora Seth Updated on Save President Donald Trump said his administration has been holding talks with Harvard University and may announce a deal over the next week, potentially ending a standoff that has jeopardized billions of dollars of the school's funding and ignited a rollicking legal fight. 'They have acted extremely appropriately during these negotiations, and appear to be committed to doing what is right,' Trump said Friday on Truth Social. 'If a Settlement is made on the basis that is currently being discussed, it will be 'mindbogglingly' HISTORIC, and very good for our Country.'
