A private gauge of China’s manufacturing activity tumbled in May, touching the lowest level since September 2022 as tariffs continue to weigh, despite the U.S. trade truce. The Caixin manufacturing purchasing managers index signaled a contraction for the first time in eight months.

China has grappled with entrenched deflationary pressure, as a prolonged real estate downturn and job insecurity hampered investment, consumer spending.

Two Japanese men were killed in Dalian, a city in northeastern China, and a suspect has been detained, Kyodo News reported on Tuesday, citing the Japanese embassy in China.