A private gauge of China’s manufacturing activity tumbled into contraction in May, as tariffs continue to weigh despite a trade truce with the U.S.

A private survey revealed that China’s manufacturing activity unexpectedly contracted in May to 48.3 in May 2025, down from April’s 50.4 and missing forecasts of 50.6, marking the first contraction in the sector in eight months,

BEIJING (Reuters) - China's factory activity in May shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating U.S. tariffs are now starting to directly hurt the manufacturing superpower.