Recent data from China’s Purchasing Managers’ Index (PMI) for October indicates steady economic expansion, showing improved activity across manufacturing and services sectors. This uptick suggests that government measures to support growth are yielding results, boosting business confidence. However, concerns about U.S.-China trade relations linger, with tariffs and restrictions affecting key industries, including technology and automotive sectors. This trade uncertainty has been impacting the yuan, which remains under pressure despite domestic economic growth .
The yuan’s performance in forex markets reflects a balance of positive domestic indicators with external trade challenges. Analysts note that while China’s internal economy appears to be stabilizing, sustained yuan strength will depend on reducing trade tensions with the U.S. and securing stable global demand for Chinese exports.
