China’s Economy Losing Steam as Trade Conflict With U.S. Intensifies

Manufacturing slowdown boosts likelihood that Beijing will step up economic stimulus measures

BEIJING—An intensifying trade brawl with the U.S. is starting to take a heavier toll on China’s economy, as weakening foreign demand and sluggish domestic consumption cause Chinese manufacturers to significantly scale back production.

The manufacturing slowdown, detailed in reports released Sunday, raises the prospect that China’s leaders will step up economic stimulus measures to prop up growth.

The...