Trump's Tariffs Push China's Factory Activity to Worst Contraction since Late 2023
Taarek Refaat
China's factory activity recorded its worst contraction since December 2023, revealing the damage the trade war with the United States has inflicted on the world's second-largest economy.
The National Bureau of Statistics said Wednesday that the official Purchasing Managers' Index (PMI) for the manufacturing sector fell to 49.0 in March, down from 50.5 in March. This was below the median forecast of 49.7, according to economists. A reading below 50.0 indicates a contraction.
The non-manufacturing PMI, which measures activity in the construction and services sectors, fell to 50.4 from 50.8 last month. This was below expectations of 50.6.
China's CSI 300 index of mainland-listed shares saw little change.
The PMI readings provide the latest official view of the state of the Chinese economy after the Trump administration imposed a 145% tariff on Chinese goods, a figure expected to hurt a sector that contributed to about a third of the economy's growth last year. Zhao Qinghe, a senior statistician at the National Bureau of Statistics, noted that the decline was due to a high base the previous month and "rapid changes in the external environment."
In a statement accompanying the release of the figures, Zhao reiterated the government's position that trade wars are zero-sum, pointing to a slowdown in industrial activity in major economies including the United States, the United Kingdom, and Japan.
In an early sign of trouble for Chinese exporters, cargo shipments collapsed, according to one estimate, by as much as 60%.
Economists at banks including UBS Group and Goldman Sachs have cut their forecasts for China's 2025 growth to around 4% or less in recent weeks.
The Caixin Manufacturing Purchasing Managers' Index for April came in at 50.4, higher than the forecast of 49.7. These figures indicate growth compared to the previous month, albeit at a slower pace. This particular indicator often reflects the activity of smaller, more export-oriented companies.
"The US tariff increases have weighed on external demand, with new export orders falling at the fastest pace since July 2023, leading to only a marginal increase in total new orders in April," said Wang Zhe, chief economist at Caixin Insight Group.
To help ease the pressure on exporters, Beijing this week announced plans to help struggling companies access loans and boost domestic consumption, but it stopped short of announcing bolder economic stimulus. Instead, officials are focusing on implementing the stimulus package passed in early March.
Beijing also appears in no hurry to negotiate with Washington. Foreign Minister Wang Yi warned countries against succumbing to US tariff threats, saying that appeasement would only encourage the "bully."
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
News
Egypt confirms denial of airspace access to US B-52 bombers
News
Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia
Lifestyle
Pistachio and Raspberry Cheesecake Domes Recipe
News
Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content
Arts & Culture
Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized
Videos & Features
Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO)
Sports
Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer
Sports
Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers
News
Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies
Arts & Culture
New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
16 hours ago
- See - Sada Elbalad
Tump's Threat to Cancel SpaceX Contracts Could Force U.S. Back Into Russian Dependence, Experts Warn
Ahmed Emam US President Donald Trump's threat to revoke the government contracts with Elon Musk's SpaceX has sparked serious concern among space policy experts, who warn that such a move could undermine American space dominance and potentially force NASA to resume its reliance on Russia for access to the International Space Station. In a report published by "News week" , multiple analysts cautioned that cutting ties with SpaceX—the company behind many of NASA's most critical crewed missions—would leave the U.S. space program with limited alternatives. 'SpaceX is essential to both U.S. national security and NASA's operations. It's a core player in everything the United States is doing in space,' said Clayton Sopp, Deputy Director of the Space Security Project at the Center for Strategic and International Studies, an institution labeled 'undesirable' by Russian authorities. Sopp warned that canceling SpaceX contracts would create 'a massive gap' in American space capabilities, particularly in launching astronauts and maintaining operations aboard the ISS. 'There is no current service that can immediately fill that void,' he added. The *Newsweek* report follows Trump's escalating feud with Musk, whose companies have received an estimated \$38 billion in government contracts, loans, subsidies, and tax breaks over the past decade—support that has significantly contributed to Musk becoming the world's richest man, according to *The Washington Post*. Trump, reacting to Musk's recent public criticisms and calls for his disqualification from office, has threatened to conduct a sweeping review of government contracts with Musk's companies. That review, he hinted, could lead to their cancellation. In response, Musk announced that SpaceX would 'immediately' begin pulling its Dragon spacecraft from service—an announcement that raised eyebrows and questions about the potential impact on NASA's crewed space missions. Scott Hubbard, former director of NASA's Ames Research Center and founding director of its Astrobiology Institute, expressed skepticism that Trump's threats would materialize but warned of the consequences if they did. 'There is currently no alternative to the Falcon 9–Dragon system,' Hubbard told Newsweek. 'Without it, astronauts could be left stranded on the ISS—unless we're prepared to go back to the Russians, asking for mercy and seats on Soyuz.' That sentiment was echoed by Benjamin L. Schmitt, a physicist and space policy expert at the University of Pennsylvania. He called SpaceX's 2020 crewed flights 'a breakthrough in ending U.S. dependence on Russian launch systems,' noting that for years NASA had paid Russia for Soyuz seats following the retirement of the Space Shuttle. 'Canceling these contracts now would be a major setback—not just technologically, but strategically,' Schmitt said. 'It would hand leverage back to the Kremlin and strike at the heart of U.S. space independence.' SpaceX currently holds more than \$22 billion in active U.S. government contracts, including a \$2.89 billion deal with NASA to develop the Human Landing System for the Artemis Moon mission and a \$1.15 billion contract for a second lunar lander. Other major deals include a \$1.8 billion agreement with the National Reconnaissance Office for a classified satellite network and \$102 million from the U.S. Air Force for the Rocket Cargo program. As tensions between Trump and Musk intensify, the political drama threatens to spill into national security and aerospace policy—areas where SpaceX has become deeply embedded. 'SpaceX has moved from being a disruptor to a pillar of U.S. space infrastructure,' said Sopp. 'Removing that pillar could cause the entire structure to wobble.' read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan
See - Sada Elbalad
21 hours ago
- See - Sada Elbalad
Industrial Demand Drives Silver Prices to 13-Year High
Waleed Farouk Silver prices witnessed a significant rise last week, with local markets recording a 1.6% increase, while the global ounce price surged by 8.8%, This rise was mainly driven by increased industrial demand for the white metal amid influential economic and geopolitical shifts. The price of 800-fineness silver gram opened the week at EGP 46.50 and closed at EGP 47.25, marking an increase of EGP 0.75. Globally, the ounce price rose from $32.96 to $35.85, touching a peak of $36 — its highest level since February 2012. the price of 999-fineness silver gram reached EGP 59, 925-fineness silver gram stood at EGP 54.50, and the 925-fineness silver pound was valued at EGP 436. The surge in silver prices was fueled by rising demand as an industrial metal, particularly in the solar energy and electronics sectors, amid declining safe-haven demand towards the end of the week. Silver also benefited from escalating trade tensions between the United States and China, alongside a weakening U.S. dollar, which boosted appetite for precious metals. However, a positive shift in relations between the two countries, following a constructive call between U.S. President Donald Trump and Chinese President Xi Jinping, led to the resumption of trade talks. This reduced silver's safe-haven appeal but reinforced its role as an important industrial metal. Additionally, strong GDP and retail sales data from the Eurozone for Q1 bolstered investor confidence in the European economy. Meanwhile, better-than-expected employment figures from the U.S. and Canada contributed to optimism regarding North American economic growth prospects. Geopolitical tensions in regions such as the Middle East and Ukraine continue to exert additional pressure on the market, further increasing demand for silver and precious metals in general. Analysts believe silver retains significant upside potential in the near future, expecting it to continue benefiting from global financial market volatility and currency movements. Investors are also closely monitoring upcoming U.S. inflation data, anticipated this week, which is expected to play a decisive role in the Federal Reserve's interest rate policies and consequently impact silver price movements in global markets. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan
See - Sada Elbalad
a day ago
- See - Sada Elbalad
Transport Min. Urges Drivers Not to Use BRT Lane
Taarek Refaat The Ministry of Transport has urged drivers again not to use the BRT lane on the left side of the road and to adhere to driving in the other lanes. The Ministry explained in a statement that this is aimed at maintaining the efficiency and sustainability of the new transportation system, reducing accidents resulting from vehicle overlap in the BRT lane, and supporting traffic discipline on the Ring Road. The Ministry indicated that it is cooperating with the General Traffic Department to issue and enforce a deterrent traffic violation for vehicles traveling in the BRT lane on the Ring Road. It affirmed its great confidence in the high awareness among citizens using the Ring Road, adhering to safety instructions and not using the BRT lane, which contributes to the preservation of lives and vehicles. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan
