Surveys have shown that manufacturing in China rebounded in August, easing concerns that the economy was heading for a sharp slowdown in the second half of 2010.
The turnaround was underpinned by domestic orders, but analysts warned that demand in the US and Europe - big buyers of Chinese-made goods - would weaken in the coming months.
The HSBC China Manufacturing PMI, or purchasing managers' index, rose to a three-month high of 51.9 last month from 49.4 in July.
A separate survey published by a government agency - the China Federation of Logistics and Purchasing (CFLP) - showed manufacturing activity reached 51.7 last month compared with 51.2 in July. Any figure above 50 means the sector is expanding, while below 50 indicates a decline.
China's economy slowed in the second quarter, growing at an annual rate of 10.3% compared with a blistering 11.9% in the first three months as government efforts to rein in soaring property prices started to bite.
Strong domestic orders saw the level of new business taken on by Chinese manufacturers rise moderately in August, following two successive months of contraction.
