China’s Factories Keep Growing, but Rising War-Driven Costs Threaten Margins and Global Supply Chains

China’s manufacturing sector extended its recovery for a fourth consecutive month in March, reinforcing signs that the world’s largest industrial base entered 2026 with renewed momentum. But beneath the headline expansion, a more consequential story is emerging: the sharpest surge in factory costs since the post-pandemic commodity shock, raising fresh concerns about margins, inflation, and

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