China’s factory activity contracted at a slower rate in May after a reprieve in the tariff war with the US unclogged trade flows, even as weak domestic demand continues to weigh on the economy.

China’s manufacturing activity shrank in May for the second month running, official data showed today, despite Beijing reaching a temporary ceasefire in

The very high tariffs I set made it virtually impossible for China to trade into the United States,” Trump wrote. He claimed the abrupt halt in trade had devastating effects, leading to factory closures and “civil unrest” in China.