sian manufacturing slowed in December 2024, with Chinese demand weakening and fears over trade risks stemming from Donald Trump’s return to the US presidency. Factory activity in China and South Korea contracted, while Taiwan and Southeast Asia showed some resilience.

BulletsIn

• China’s manufacturing PMI fell to 50.5 in December, signaling minimal growth compared to 51.5 in November.
• Beijing’s late-2024 policy measures boosted short-term growth, but structural challenges persist.
• Trump’s tariff threats on Mexico, Canada, and China expected to disrupt global trade and exports.
• South Korea’s manufacturing PMI showed declining activity in December, with output shrinking faster.
• Taiwan and Southeast Asia displayed slight improvement, contrasting regional trends.
• Official surveys in China revealed factory activity barely growing, raising economic concerns.
• Economists predict early 2025 might see some recovery, but gains could be short-lived.
• Broader global business activity and exports likely to be impacted by trade policy shifts.
• Persistent structural imbalances in major economies remain a long-term challenge.