China's manufacturing output has been declining for two consecutive months due to the impact of President Donald Trump's tariff policies.
This information was reported by the Chinese media outlet South China Morning Post on Monday, citing the US media outlet Bloomberg.
The report said that production in Chinese factories unexpectedly decreased in January, as in December, which may force the Chinese government to take fiscal stimulus measures.
"The biggest problem is that unemployment will increase. Along with exports, commodity prices will fall," Wang Zhi, senior economist at market analysis firm Caixin Insight Group, said in a message.
The message also stated that China's export environment may deteriorate due to increasing uncertainty in foreign trade. In such a situation, China's economic crisis will become more pronounced.
It also said that for the second consecutive month, the prices of Chinese goods fell in January. This is the first price drop since July 2023. Factory owners believe that sales may increase slightly if the prices of goods fall.
Many factories are now closed as millions of workers in China travel to their villages for the New Year holiday. There are fears that China is heading for an economic crisis at the start of the new year.
