China’s manufacturing sector experienced a noticeable slowdown in May, reflecting growing headwinds from escalating US tariffs. Industrial output contracted as export orders weakened, signaling cautious sentiment among manufacturers amid an intensifying trade dispute. Several key sectors, including electronics and automotive parts, reported declines in production volumes due to disrupted supply chains and reduced foreign demand.

  • Electronics: Output down by 4.2%
  • Automotive parts: Production dropped 3.7%
  • Steel manufacturing: Declined 2.5%

Moreover, factory orders showed a marked reduction, highlighting the dampening effect of tariffs on both domestic and international buyers. Companies have begun to reassess investment plans, with many seeking alternatives outside China to mitigate tariff-related costs. The slowdown raises concerns over the broader impact on China’s economic…