China's manufacturing sector is undergoing significant developments. In May 2025, the PMI index rose to 49.5. However, despite this increase, the sector is still experiencing contraction.

Trade tensions with the US are negatively impacting China's manufacturing industry. In April, the index dropped to 49, marking the lowest level in 16 months.

However, profits of industrial companies in China reached 1.51 trillion yuan in the January-March 2025 period, showing a 0.8% increase compared to the same period last year.

Government stimulus measures have yet to produce the expected effects. Domestic demand remains weak, and external uncertainties continue to negatively impact the economy.

China continues to grow despite Trump's tariff increases. But is this growth sufficient? What are the effects of global competition?