<h1>China's manufacturing contracts for sixth month as weak demand, US trade tensions and tech deal risks raise legal stakes</h1> China's official manufacturing PMI remained below the 50 threshold for a sixth consecutive month, signaling contraction amid weak domestic demand and trade tensions with the United States. Private-sector PMI showed modest expansion, and some month-on-month improvements in new orders and production were reported. Ongoing bilateral negotiations include tariff threats and a proposed transfer of a Chinese-owned social media business to a U.S. purchaser, which would require regulatory approvals and could affect the truce. The situation raises legal issues around trade remedies, export controls, national security reviews of tech transactions, and potential regulatory conditions tied to any bilateral agreement, while monetary policy adjustments are being considered to spur domestic demand.