world-economy

China's Factory Momentum Accelerates on Export Surge

China's manufacturing sector expanded faster than anticipated in June, driven by a sharp rebound in overseas shipments. This expansion offset weakness in domestic demand. Factory activity reached its strongest pace since 2021. The expansion underscores a widening divergence in China's economy, where goods production is solidifying while services remain sluggish.

The surge is prompting logistics operators to expand capacity. China Southern Air Cargo announced plans to add five Boeing 777-8 freighters and two standard 777 cargo jets to its fleet. The carrier is positioning itself to capture growing e-commerce volumes and secured options for three additional 777-8F aircraft.

Industry analysts attribute the manufacturing resilience to shifting global trade patterns. American importers are accelerating purchases ahead of potential tariff increases.