China's Manufacturing Rebound: Stimulus Sparks Hope Amid Trade Tensions

China's manufacturing growth returned in February, easing concerns around a sluggish economy. The official purchasing managers' index (PMI) rose above the break-even point, highlighting the impact of Beijing's stimulus measures. Ongoing trade tensions and plans for further economic boosts underscore the challenges faced by policymakers.

In a promising sign for China's economy, manufacturing activity expanded in February, according to an official survey released on Saturday. This growth suggests Beijing's stimulus efforts are yielding positive results amid a cautious recovery in the world's second-largest economy.

The purchasing managers' index (PMI) reached 50.2, surpassing January's 49.1 and breaking past the 50-point threshold that distinguishes growth from contraction. This figure outpaced forecasts and indicates resilience against the challenges posed by trade tensions and domestic economic hurdles.

With U.S. President Donald Trump escalating tariffs on Chinese goods, Beijing faces increasing pressure to sustain momentum. However, analysts remain uncertain about the pace at which demand can be revived, despite government promises of increased fiscal spending and monetary easing. Eyes are now on the upcoming annual parliament meeting for further economic measures.

(With inputs from agencies.)