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flag China's factory activity remains in contraction despite a US trade truce, facing multiple economic challenges.

flag Despite a trade truce with the US, China's factory activity contracted for the fifth straight month in August. flag The Purchasing Managers' Index (PMI) rose slightly to 49.4 from 49.3 in July, still below the 50 threshold for growth. flag China faces challenges like a struggling property sector, low consumption, high youth unemployment, and ongoing trade tensions with the US, which have negatively impacted its export-dependent economy.

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