China's Manufacturing Sector Continues Contraction Amidst Economic Challenges

China's manufacturing activity contracted for a third month in June, with slight improvements in some sub-indices, amid ongoing deflation and global trade tensions. Despite stimulus efforts, factory employment and inventories declined, but exports showed signs of rebounding following a trade truce with the U.S. The Chinese government is focusing on boosting domestic demand to counteract economic challenges, including falling consumer prices and profit declines in industrial firms.