China's Factory Activity Sees Modest Boost Amid Trade Tensions

China's factory activity expanded for a second month in November, aided by stimulus measures. However, U.S. trade threats pose risks to growth. While Chinese policies seem to support domestic demand, uncertainty surrounds long-term economic stability amid looming trade wars and insufficient demand concerns.

China's factory activity experienced modest expansion for a second consecutive month in November, according to an official survey released by the National Bureau of Statistics. The purchasing managers' index (PMI) rose to 50.3, surpassing the median forecast of 50.2 and achieving a seven-month high.

This positive trend follows recent stimulus efforts, offering a glimmer of hope for improved sentiment in the manufacturing sector. However, potential challenges loom due to additional U.S. tariffs as President-elect Donald Trump threatens further trade measures against Chinese goods.

Despite some signs of stabilization in the property market, overall demand remains insufficient, highlighting the need for increased government investment. As China's policymakers strategize to counter economic vulnerabilities, the future outlook remains uncertain amid ongoing global trade tensions.

(With inputs from agencies.)