The purchasing managers' index (PMI) for China's manufacturing sector maintained steady and optimized growth in November, with key areas such as new growth drivers and consumer goods showing steady and rapid expansion.
The PMI for China's manufacturing sector came in at 50.3 in November, up from 50.1 in October, according to data jointly released by the China Federation of Logistics and Purchasing and the National Bureau of Statistics (NBS) on Saturday.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
In November, the PMI for equipment manufacturing and high-tech manufacturing stood at 51.3 percent and 51.2 percent, respectively.
In the realm of consumer goods manufacturing, as the new year approaches, the market for New Year's products is heating up. This has led to a rebound in consumer goods manufacturing, with the purchasing manager index returning to the expansion range. Additionally, both the production index and the new order index have exceeded 52 percent, reflecting an accelerated recovery.
"Overall, the recovery of the industry is widespread. Furthermore, alongside this general recovery, the optimization of the industrial structure is quite evident," said Cai Jin, vice chairman of the CFLP.
From the perspective of enterprise types, large enterprises continue to grow steadily, with their PMI remaining in the expansion range, providing significant support for the economy. Additionally, the recent strengthening of policies aimed at alleviating challenges for businesses has led to improved operations for small and medium-sized enterprises.
Notably, medium-sized enterprises have returned to the expansion threshold after remaining below 50 percent for six consecutive months, with an uptick in market demand and accelerated production activities. Small enterprises also experienced a strong rebound, with the production index rising by 3.9 percentage points from the previous month to exceed 51 percent.
"How can we help enterprises overcome difficulties? I believe it is crucial to implement several measures in this regard. In the short term, we need to address the issue of insufficient demand," said Zhang Yansheng, a research fellow of the Chinese Academy of Macroeconomic Research.
China sees rising new economic drivers in manufacturing sector in November
The universal "reciprocal tariffs" imposed by the United States signals a decline in the U.S. economic dominance and dollar hegemony, as the country is attempting to extract excessive financial benefits from its trading partners, according to economists, who warn the Trump administration is playing a "dangerous game".
U.S. President Donald Trump last week signed an executive order on the so-called "reciprocal tariffs," imposing a 10-percent "minimum baseline tariff" before unveiling higher rates on certain trading partners. The policy sent shockwaves throughout the global economy and triggered panic on financial markets, with analysts warning of significant risks and dire economic consequences.
In an interview with the China Global Television Network (CGTN), Hong Hao, chief economist of the GROW Investment Group, a Shanghai-based hedge fund, said the tariffs reflect Trump's strategy to extract economic benefits from trading partners, particularly viewing China as a significant competitor. "Trump really believes that the trade terms with the trading partners have been unfair to the U.S., and as a result, the U.S. manufacturing sector has been hollowed out. Therefore, the U.S. is paying an excessive price for globalization, and now, it's time to pay back. I think, from this angle, he is trying to extract economic rent from its trading partners, and also he is trying to see China as one of the major U.S. rivals at this juncture. So, I think, as a result, he is playing a very dangerous game. And, as you can see, it's political theater in the sense that he is trying to dramatize the extreme pressure, so that he can get excessive rent from the opponent," he said
Trump's unilateral imposition of tariffs has eroded global confidence in the U.S. and its dollar's status, leading many to state that the American hegemony may not persist, according to Josef Gregory Mahoney, a professor of politics and international relations at East China Normal University.
"The U.S. economy is at an inflection point. There is a moment where the previous strategies being used to sustain American hegemony were no longer working. And, it's only a matter of time before the U.S. position erodes, given the fact that it's been a house of cards built on the dollar supremacy. And a lot of people don't see that as having a brighter future. This has moved past the theater stage and has moved really directly into one in which no one really has confidence in the U.S. anymore. No one has confidence in the dollar. No one has confidence in the U.S. being committed to the multilateral system, to global trade and so forth and so on," he said.
Trump playing "dangerous game" as tariff measures signal decline in U.S. dollar hegemony: economists
