China’s manufacturing sector is expected to have contracted for a second straight month in May, according to a Reuters poll, with the official Purchasing Managers’ Index (PMI) forecast at 49.5, slightly above April's 49.0 but still below the 50-point mark that separates growth from contraction. The slowdown comes as China faces escalating trade tensions with both the U.S. and the European Union. U.S. tariffs of up to 145% and EU anti-dumping investigations into Chinese goods, including EVs and tires, are weighing on manufacturers. In response, China has launched probes into European brandy and dairy imports. Economists warn that the trade disputes could derail China’s fragile export-led recovery.