Asia’s key manufacturing hubs showed signs of slowdown in October, as weak demand from the United States and trade tensions under President Donald Trump continued to weigh on factory activity, according to recent business surveys. While Trump’s visit to Asia last week achieved some progress in trade negotiations with major economies like China and South Korea, exporters remain cautious about U.S. demand.
Private-sector purchasing managers’ indexes (PMIs) for October, released on Monday, indicated that manufacturing growth slowed in China and contracted in South Korea, with export orders declining in both countries. China’s official PMI survey on Friday confirmed that factory activity fell for the seventh consecutive month, highlighting that the earlier rush to export ahead of U.S. tariffs has largely ended.
“The PMIs suggest that China’s economy lost some momentum in October, with slower growth across manufacturing and construction,” said Zichun Huang, China economist at Capital Economics. “Some of this weakness may reverse in the near term, but any boost to exports from the latest U.S.-China trade ‘deal’ is likely to be modest, and wider headwinds to growth will persist,” Huang added.
Last week, Trump and Chinese President Xi Jinping met in South Korea and agreed to de-escalate tensions, including a one-year delay in reciprocal tariffs. However, according to Reuters, the agreement addresses only the surface-level issues between the two superpowers, leaving deeper economic divides unresolved. Policymakers in Beijing are closely watching whether China’s $19 trillion economy can meet its official 2025 growth target of around 5% without additional stimulus.
Trade data for September showed China’s exports rising faster than expected, but much of that growth came from new markets, as shipments to the United States fell 27% year-on-year. Similarly, South Korea’s recent trade agreement with the United States secured lower tariffs on Korean goods but was seen largely as a compromise that prevents Asia’s fourth-largest economy from falling behind in global trade.
Elsewhere in the region, PMIs revealed continued declines in factory activity in Malaysia and Taiwan, while Vietnam and Indonesia reported growth in their manufacturing sectors, providing a mixed picture for Asian industrial output.
The data underscores persistent challenges for Asian exporters as global trade uncertainty and U.S. economic demand continue to shape manufacturing trends across the region.
