China's Economy Pressured By US Tariffs
The trade dispute between the US and China has raised uncertainty over China's economic growth. Data for the past month from China showed that the second largest economy in the world is already under the influence of US tariffs. Both, official and private PMI Caixin and IHS Markit declined in July, and the private manufacturing index fell to an eight-month low due to lower export orders.
Today’s data showed, that Chinese manufacturing sector continued to expand in August at a slightly faster pace. The official Purchasing Managers’ Index (PMI) rose to 51.3. Analysts previously expected the number to drop to 51.0 from July’s 51.2. The service PMI jumped to 54.2 in August from 54.0 in July.
Only last week, the US and China introduced reciprocal tariffs for each other's goods worth $16 billion. In July, both countries also introduced tariffs for each other's imports amounting to $34 billion.
It was reported earlier, that that US President wants to impose tariffs on another $200 billion worth of Chinese goods as early as next week. That would mean more than half of all Chinese imports would be subject to tariffs. The tariffs could go into effect after the public-comment period ends on September 6.