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2nd LD-Writethru-Economic Watch: China's economy demonstrates resilience amid uncertain external environment

Xinhua
| April 30, 2025
2025-04-30

BEIJING, April 30 (Xinhua) -- China's economic output continued to rise in April, though changes in the external trade environment brought a level of disruption to the manufacturing sector, the National Bureau of Statistics (NBS) said on Wednesday.

In April, China's composite purchasing managers' index (PMI) stood at 50.2, indicating that overall business activity continued to expand, according to data released by the NBS.

The PMI for the manufacturing sector fell to 49, while the PMI for the non-manufacturing sector came in at 50.4. The composite PMI is calculated based on the weighted average of the two indices.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

NBS statistician Zhao Qinghe attributed the manufacturing PMI decline to a high base effect from the previous period's rapid growth in the sector and drastic changes in the external environment.

Wen Tao, an analyst at the China Logistics Information Center, said that April saw market demand and production cool temporarily amid rising external pressures, which also led to fluctuations in raw materials procurement and market prices.

However, he noted that China's economic fundamentals remain solid, supported by its supersized domestic market and resilient industrial and supply chains, along with policy measures that have helped sustain steady growth.

Though overall manufacturing activity moderated, certain sectors continued to show resilience and growth.

The PMI for high-tech manufacturing stood at 51.5 percent, well above the overall manufacturing level, with both production and new orders sub-indices exceeding 52 percent, reflecting the sector's continued strong momentum.

Sectors such as agricultural and sideline food processing, food, liquor, pharmaceuticals, and beverages and refined tea also saw their production and new orders sub-indices come in above 53 percent, driven by the continued release of demand potential in China's supersized domestic market.

Despite headwinds, business expectations remained in expansion territory, with the production and business activity expectations index standing at 52.1 percent in April.

In particular, enterprises in sectors such as food, liquor, beverages and refined tea, automobiles, and railway, ship and aerospace equipment all saw their expectations indices rise above 58, indicating strong business optimism.

In the non-manufacturing sector, the PMI has stayed above 50 for four consecutive months this year, indicating a stable pace of expansion.

Business activity indices in sectors related to air transport, telecommunications, radio, television and satellite transmission services, internet software and information technology services, and insurance remained above 55, indicating robust growth in overall business volume.

The business activity expectations index came in at 56.4, remaining in a relatively high range, with most services enterprises maintaining a positive outlook.

China's economy has started 2025 with renewed vigor, with its gross domestic product registering 5.4 percent year-on-year growth in the first quarter.

Chinese policymakers recognized this positive trend at a high-level meeting of the Political Bureau of the Communist Party of China Central Committee last Friday, while cautioning that an economic recovery requires further consolidation to withstand intensifying external shocks.

Looking ahead, it is imperative that the country coordinates domestic economic work with responses to international economic headwinds, and deals with the uncertainty of drastic changes in the external environment with the certainty of its own high-quality development, Zhao said. Enditem

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