In April, China’s manufacturing activity fell more than expected, indicating a contraction in the sector. The official purchasing managers’ index (PMI) dropped to 49.0, signaling a decline and marking the first time it has dipped below the critical 50-point threshold since January. This downturn reflects the continuing effects of the trade war with the United States, which has negatively impacted trade between the two largest economies. As these tariffs take their toll, market analysts will be monitoring China’s manufacturing sector closely for further changes and potential recovery signs in the future.