Key Points:China’s Caixin Manufacturing PMI dropped to 48.3 in May, the lowest since Q3 2022, signaling shrinking output.Job losses in China’s manufacturing sector signal deepening economic strain and ineffective stimulus efforts.Markets gained after reports that Trump plans to speak with Xi Jinping to ease escalating trade tensions.US-China Trade Tensions FlareUS-China tensions escalated after the US accused China of breaching the 90-day truce by delaying rare earth mineral exports. These expor