China's Manufacturing Sector Expands in June Driven by AI Demand and Exports

Beijing. China's manufacturing sector has returned to expansion in June. Factory activity has increased with the global demand for artificial intelligence (AI) related chips, computers, and other technology products. The strategy of exporters to ship goods before the imposition of US additional customs duties (tariffs) and strong export demand seem to have provided some relief to China's sluggish economy.

According to data released by China's National Bureau of Statistics (NBS), the Purchasing Managers' Index (PMI) for manufacturing in June rose to 50.3 points. In May, this index was 50 points. A survey conducted by the international news agency Reuters showed that this index was expected to remain at 50 points in June as well. A PMI index above 50 indicates that activity is increasing in any economic sector.