China Factory Activity expanded for a second straight month in April, showing resilience in the world’s second-largest economy despite global pressure from rising energy prices linked to the Iran war. The latest official data suggests that industrial output in China remains stable even as external risks increase.
The official manufacturing purchasing managers index, or PMI, slipped slightly to 50.3 in April from 50.4 in March. The figure still stayed above the key 50 level, which signals growth in factory activity. The reading was also better than economists had expected, pointing to steady industrial performance.
The National Bureau of Statistics data showed mixed signals within the sector. The new orders index dropped to 50.6 from 51.6 in March, suggesting slower demand growth. However, the production sub-index rose slightly to 51.5, showing that factories continued to increase output despite weaker new orders.
Economists say China Factory Activity has remained stable mainly due to strong export demand. Higher global oil prices, driven in part by the Iran war, have not significantly slowed industrial production in China so far. Instead, some analysts say rising energy costs have even increased demand for Chinese green technology exports.
China is a major global supplier of clean energy products, including solar panels, batteries, and electric vehicle components. Analysts say this sector is benefiting from global efforts to reduce dependence on fossil fuels. This has helped offset pressure from higher oil prices in other parts of the economy.
A separate private sector PMI survey showed even stronger growth. The index rose to 52.2 in April from 50.8 in March. This survey, conducted by S&P Global and RatingDog, focuses more on smaller and export-oriented companies. The stronger reading suggests that private manufacturers are seeing faster demand recovery compared to larger state-linked firms.
Trade conditions also appear to be improving. US tariffs on Chinese goods have been reduced following a Supreme Court decision earlier this year that challenged earlier tariff measures. This shift may support stronger export growth in the coming months, according to economists.
There is also growing attention on possible diplomatic talks between the United States and China. A planned meeting between US President Donald Trump and Chinese President Xi Jinping could help extend a temporary trade truce reached last year. Analysts say any progress in trade relations could further support China Factory Activity.
China’s broader economy grew by 5 percent in the first quarter of the year. This was higher than expected and marked an improvement from the previous quarter. However, the country still faces long-term challenges, especially in the property sector, which has slowed domestic investment and household spending.
Despite domestic weakness, exports remain a strong pillar of growth. China recorded a trade surplus of about 1.2 trillion dollars last year, the highest in its history. This highlights the country’s continued strength in global manufacturing and trade.
The government has set an economic growth target of between 4.5 percent and 5 percent for 2026. This is one of the lowest targets in decades, reflecting caution about long-term structural challenges. Policymakers are expected to focus on stabilizing industry and supporting employment.
Experts say China Factory Activity will likely remain sensitive to global risks, especially energy prices and geopolitical tensions. However, current data shows that factories are still operating at stable levels. Strong exports and industrial production continue to support the overall economy even as some domestic sectors remain weak.
