American businesses are cancelling orders from China, postponing expansion plans and hunkering down to see what trade policy surprises President Donald Trump plans to spring on them next.

Official manufacturing PMI falls faster than expected Non-manufacturing activity growth slows Trump tariffs call time on producers front-loading shipments BEIJING, April 30 (Reuters) - China's factory activity contracted at the fastest pace in 16 months in April,

The data covers a period in which a trade war between the US and China escalated dramatically, with tariffs now well over 100 per cent in both directions. China’s official PMI manufacturing gauge had expanded in February and March.

The view that the Chinese leadership was desperate to negotiate a trade deal, to avoid economic pain that could destabilize Chinese society and threaten the Chinese Communist Party’s monopoly on power, is common among China hawks in the United States. This analysis is partly accurate, but it has led many to draw false conclusions.

A Chinese government video exhorts other countries not to buckle to U.S. trade pressure and pledges to "fight on."