A private gauge of China’s manufacturing activity tumbled into contraction in May, as tariffs continue to weigh despite a trade truce with the U.S.

A private survey revealed that China’s manufacturing activity unexpectedly contracted in May to 48.3 in May 2025, down from April’s 50.4 and missing forecasts of 50.6, marking the first contraction in the sector in eight months,

The manufacturing sector in China has slipped into contraction in May, marking its lowest level since September 2022, as the impact of tariffs continues to weigh heavily on the industry despite a temporary trade truce with the U.