China’s Factory Slowdown Shows Urgency Behind US Trade Deal

Prolonged weakness in China’s manufacturing sector is showing the urgency behind this week’s deal between President Xi Jinping and President Donald Trump that reduced tariffs on made-in-China products.

Factory activity slumped for the longest streak in more than nine years in October, with the official manufacturing purchasing managers’ index dipping more than expected to 49. That suggests activity dropped the most in six months just before the leaders’ meeting stabilized ties. New orders shrank the most since 2023 as demand took a hit from trade barriers and weak sentiment at home.