• China's manufacturing PMI fell to 49 in April, indicating contraction.
• The decline is attributed to recent U.S. tariffs and weak domestic demand.
• Chinese authorities are introducing stimulus measures amid ongoing trade tensions.
• Manufacturers front-loaded exports before tariffs, impacting current activity.
• China aims for a 5% economic growth target amid challenges in recovery.

China's manufacturing activity has contracted for the first time in April after a growth peak the previous month, as indicated by the Purchasing Managers' Index (PMI), which dropped to 49 in April from 50.5 in March. This decline occurs amid escalating trade tensions with the United States, where tariffs have reached as high as 145% on many Chinese goods. In response, China imposed tariffs of 125% on certain American products, exacerbating the economic strain, according to The Jakarta Post and Channel News Asia.

The PMI's reading marks a significant decline, falling below the 50-point threshold that indicates growth, and reflects challenges stemming from the high base of previous manufacturing performance and shifts in external economic conditions. As noted by NBS statistician Zhao Qinghe, April's drop is linked to "sharp changes in (China's) external environment," suggesting serious impacts from U.S. tariffs, according to Reuters and India Times.

Although China's exports increased by over 12% in March as businesses rushed to ship goods ahead of the new tariffs, the domestic economy continues to struggle with weak consumer demand and a persistent property sector crisis. Recent government measures have included rate cuts and easing restrictions on home purchases designed to stimulate economic growth. Moreover, the government aims to create 12 million new urban jobs and maintain an economic growth target of 5% for the year, which many economists consider ambitious, as reported by India Times and Reuters.