China's factory activity returned to expansion territory in June, an official survey showed on Tuesday, driven by strong high-tech manufacturing exports linked to the AI boom, even as shipments of other goods remained weak alongside subdued domestic demand.

The purchasing managers' index for China's manufacturing sector stood at 50.3, above the 50-mark separating growth from contraction in June, up from 50 in May.

Meanwhile, the non-manufacturing PMI covering the construction and service sectors came in at 50.2, up from 50.1, according to the National Bureau of Statistics.

There is enormous international demand for semiconductors powering data centres and advanced electronics, playing to China's manufacturing strengths.

Exports of furniture grew 1.9 percent in value terms year on year, according to the latest trade data for May, while shipments of automated data processing equipment jumped 60 percent over the same period. (Reuters & Xinhua)


Edited by Priscilla Ng