Chinese manufacturing activity has shown signs of slowing as the ripple effects of the Mideast conflict begin to impact global trade.
Reports indicate that the intensifying war in Iran is creating uncertainty for international supply chains, particularly as President Donald Trump prepares for a high-stakes visit to China to discuss trade and economic ties.
The slowdown in factory activity comes at a critical time, with China's factory gate prices having surged to their highest level since the early days of the pandemic.
This development highlights the growing economic and geopolitical pressures facing the world's second-largest economy.
The situation is unfolding against a backdrop of tightened financial conditions and rising input costs, which are compounding the challenges for Chinese manufacturers.
Analysts suggest that the conflict's impact on energy and commodity markets is likely to further strain industrial output in the coming weeks.