Chinese manufacturers have seen a surge in orders in February as importers rushed to beat the higher U.S. tariffs imposed by President Donald Trump. The tariff on imports from China has increased from 10% to 20%, with the elimination of the exemption for imports worth less than $800. This move has impacted companies that relied on online sales to consumers.
The Global Times reported that Beijing is considering retaliatory measures, including tariffs and non-tariff actions, to counter Trump's policies. The Chinese Foreign Ministry has affirmed that China will take necessary steps to protect its rights and interests.
The recent data indicates a positive trend, with China's official purchasing managers index rising to 50.2% in February. This increase, along with steady industrial production, suggests that government spending and efforts to beat the higher tariffs have supported business activity.
However, there are concerns about a potential slowdown in growth, especially with the looming impact of tariffs. The Caixin manufacturing PMI survey also showed improvement, reflecting the impact of new tariffs on the manufacturing sector.
The uncertainty surrounding sudden tariff increases and other factors has raised questions about China's economic outlook. Premier Li Qiang is expected to present the annual work report to the congress, outlining policies and economic updates, including the growth target for the year.
China's focus on boosting consumer spending and supporting private industries is evident in recent government initiatives. The country aims to stimulate economic growth amid challenges posed by the COVID-19 pandemic and global trade tensions.
As China approaches the final year of the 'Made in China 2025' plan and the end of the 14th five-year plan, policymakers are likely to emphasize strategies for economic development and technological advancement.
