Tariff Tensions: China's Manufacturing Surge Amidst US Trade Spat

Chinese manufacturers saw a rise in orders as importers hurried to outpace increased US tariffs. The tariffs, imposed by President Trump, are set to increase from 10% to 20% and end exemptions for low-value imports. Beijing is planning countermeasures, while manufacturing indices show mixed economic signals.

In February, Chinese manufacturers experienced a notable increase in orders as importers scrambled to preempt imminent hikes in US tariffs. The action by the Trump administration to raise tariffs from 10% to 20% on Chinese imports, alongside the closure of a loophole for smaller imports, prompted a swift response from Beijing.

The Global Times, a publication aligned with China's Communist Party, reported that Chinese officials are contemplating both tariff and non-tariff strategies to counteract the US measures. Foreign Ministry spokesman Lin Jian affirmed China's readiness to safeguard its interests, with potential impacts on US agricultural imports.

Amid these tensions, China's official purchasing managers index increased slightly, indicating tepid expansion. Analysts caution that the looming higher tariffs could challenge this growth momentum. As Chinese leaders convene for the National People's Congress, strategies to bolster consumer spending and private industry are expected to be prioritized.

(With inputs from agencies.)