China’s manufacturing sector just crossed back into expansion territory, and the reason has less to do with Beijing’s stimulus playbook and more to do with the world’s insatiable appetite for AI hardware.
The official NBS manufacturing Purchasing Managers’ Index climbed to 50.3 in June from 50.0 in May, beating economist expectations that pegged the reading between 50.0 and 50.1. In PMI language, anything above 50 signals expansion.
AI is doing the heavy lifting
The standout number is the high-tech manufacturing PMI, which hit 53.5.
The driver is straightforward: global AI investment is creating massive demand for Chinese-made semiconductors, computers, and related electronics.
