A local resident from Xuzhai Village in Dongyang, East China's Zhejiang Province, makes decorated lanterns for the Mid-Autumn Festival on September 3, 2024. Decorated lanterns from Xuzhai Village have a long history, integrating multiple techniques including wood carving, bamboo weaving and tailoring. They're sold in other parts of China as well as overseas markets. Photo: VCG

China's manufacturing sector showed signs of improvement in August, with the Caixin Manufacturing Purchasing Managers' Index (PMI) rising to 50.4, up 0.6 percentage points from July, bringing the index back above the expansion threshold. 

The data suggest a pickup in demand, steady employment levels and improving business confidence, but challenges remain in the face of external uncertainties, according to the survey published on Monday.

A reading above 50 indicates an expansion in activity, while a number below signals a contraction. 

The production index in August saw a slight increase in the expansion range, while the new orders index reversed its contraction in July and returned to expansion territory.

According to surveyed enterprises, growth in new orders was mainly driven by improvements in basic demand and various promotional measures. 

Employment in the manufacturing sector stabilized in August, with the employment index hovering in expansion territory. 

Manufacturers in the industry generally believe that factors such as business expansion, new product releases and an improvement in economic conditions will drive sales growth. 

Wang Zhe, a senior economist at Caixin Insight Group, said that the August PMI data suggest a modest recovery in the manufacturing sector, with both supply and demand expanding, but challenges remain in achieving stable growth in the face of external uncertainties.

The Caixin data showed that external demand weakened in August, with the new export order index falling below the critical point for the first time this year, marking the lowest level since December 2023. 

China's official manufacturing PMI released by the National Bureau of Statistics (NBS) came in at 49.1 in August, down from 49.4 in July. 

Zhao Qinghe, an NBS statistician, attributed the slight drop to factors such as extreme weather and off-season production in some industries. 

Zhou Maohua, an economist at China Everbright Bank, told the Global Times on Monday that there is a need for increased implementation of macroeconomic policies, with a continued focus on boosting effective demand and promoting domestic circulation. 

The key priority is to accelerate the implementation of policies to fully unleash their benefits and boost market confidence. Additionally, policy support should be optimized based on the uneven recovery of different industries, Zhou added. 

A US Navy patrol aircraft was reportedly spotted as a Philippine Coast Guard ship rammed into a China Coast Guard (CCG) vessel in the lagoon of China’s Xianbin Jiao in the South China Sea on Saturday, with experts saying the US plane serves as encouragement for the Philippines to conduct bolder and riskier provocations.

The Philippine Coast Guard ship MRRV-9701, which has been illegally stationed at China’s Xianbin Jiao, on Saturday lifted its anchor and conducted continuous maneuvers, stirring up troubles in the lagoon of Xianbin Jiao. CCG Vessel 5205 took measures including verbal warnings, monitoring and control in accordance with the law and regulations, Liu Dejun, a CCG spokesperson, said in a statement on Saturday.

In the process, the Philippine MRRV-9701 deliberately rammed into CCG Vessel 5205 in an unprofessional and dangerous manner, causing a collision for which the Philippines bears full responsibility, Liu said.

Liu demanded the Philippines to immediately withdraw its ship from the Chinese reef.

The CCG also released a video showing the Philippine ship sailing into the path of the Chinese vessel, causing the collusion.

The Philippines has repeatedly attempted to send supplies to the MRRV-9701 that has been illegally anchored in the lagoon of China’s Xianbin Jiao since April, first using ships then using a helicopter, marking serious violations to China’s territorial sovereignty and maritime rights and interests, as well as the Declaration on the Conduct of Parties in the South China Sea.

The latest movement by the MRRV-9701 showed that, unlike the Philippines’ old warship illegally grounded at China’s Ren’ai Jiao, the MRRV-9701 is capable of moving on its own, observers said.

Xue Chen, a research fellow at Shanghai Institutes for International Studies, told the Global Times that if the MRRV-9701 runs short of supplies, it should withdraw from Xianbin Jiao and return to the Philippines.

It exposed that the Philippine ship’s deployment at Xianbin Jiao is aimed at creating a false concept to smear China in the international community, with the aim of violating China’s sovereignty, Xue said.

During the incident, a US Navy P-8A maritime patrol aircraft was spotted on-site disrupting the CCG’s law enforcement operations, according to Yuyuan Tantian, a social media account affiliated with state broadcaster China Central Television.

A Beijing-based military expert who requested anonymity told the Global Times on Sunday that the US military aircraft could gather intelligence and potentially carry out jamming on Chinese vessels.

The P-8A’s presence serves as an encouragement to the Philippines to conduct harder provocations, the expert said, noting that US aircraft could also serve as an aerial military “journalist” contributing to its scheme of throwing mud on China.

Such moves will only sabotage peace and stability in the South China Sea, experts said, predicting new rounds of provocations by the Philippines in near future, backed by the US.

The Embassy of Pakistan in China celebrated the 78th Independence Day of Pakistan in Beijing on August 14. Activities were hosted at the embassy. The friendship between China and Pakistan was also celebrated at an award ceremony.
In the early morning, officials and members of the Pakistani community participated in a flag-hoisting ceremony to celebrate the 78th Independence Day of Pakistan. Holding the national flag, Pakistani children smiled in the morning sunlight.

Messages from the President of the Islamic Republic of Pakistan, Asif Ali Zardari, as well as Prime Minister Muhammad Shehbaz Sharif, were extended to those in attendance.

In his keynote speech, Pakistan's Ambassador to China Khalil Hashmi said, "This day marks a celebration of our nation's enduring spirit, a testament to the sacrifices and unwavering resolve of our founding fathers, who paved the path for our freedom. As we unfurl our national flag today, let us reflect on the progress we have made and renew our commitment toward a prosperous and peaceful country."

The ambassador also stressed the importance of Pakistan-China friendship.

"Here in China, we are privileged to witness the blossoming of a friendship that has grown alongside our nation's journey. The bond between Pakistan and China, characterized by mutual respect and a shared vision, is unparalleled in inter-state relations," he said.

Moreover, the Embassy of Pakistan in China hosted a Pakistan Civil Award Investiture Ceremony. Two representatives who contributed to the bilateral ties were awarded - Sha Zukang, former permanent representative of China to the UN in Geneva, who also served as president of the China-Pakistan Friendship Association, and Nong Rong, deputy director of the Hong Kong and Macao Work Office of the CPC Central Committee and Hong Kong and Macao Affairs Office of the State Council, who also served as the Chinese Ambassador to Pakistan.

Ambassador Hashmi, on behalf of the President of Pakistan, conferred the prestigious "Hilal-e-Quaid-i-Azam" award.

In his remarks, the Ambassador extended heartfelt congratulations and paid a rich tribute to the contributions made by the two dignitaries. He highlighted the significant impact of their efforts on bilateral relations and beyond.