China’s Factory Activity Shrinks in May, Hit by U.S. Tariffs

China’s factory activity contracted in May for the first time in eight months, according to a private-sector survey released today. The data signals that U.S. tariffs are beginning to take a direct toll on the world’s second-largest economy. The slowdown in manufacturing suggests weakening demand both at home and abroad, raising fresh concerns about China’s economic resilience amid escalating trade tensions with the United States. Analysts say the decline may prompt Beijing to consider new stimulus measures as pressure mounts on its export-driven sectors.