China's factory activity hit its highest level in a year, another sign that the economic recovery is gaining momentum

The latest reading was the highest since March last year, when the reading was 51.9.

“In March, when companies resumed production Lunar New Year“Market vitality has improved,” said Zhao Qinghe, senior statistician at NBS.

He said in a statement that China's manufacturing sector experienced a broader uptrend in March, with 15 of 21 sub-industries surveyed expanding, up from just five a month ago.

“The survey results also show that companies still face some outstanding issues in production and operations. For example, the proportion of companies experiencing increased industrial competition and insufficient market demand is still high,” he added.

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The March manufacturing purchasing managers' index continued its upward trend by several headlines Economic indicators for the first two months of the year – including industrial production, retail sales and fixed investment – which exceeded analysts' forecasts.

But skepticism remained as the country's housing crisis and local government debt worsened.

Additionally, there has been much speculation in recent years about whether China is losing its luster as a location for business and investment amid slowing growth, an uncertain national security climate and regulatory measures that some see as arbitrary.

Chinese leaders have stepped up their charm offensive to raise expectations both abroad and at home.

Chinese President Xi Jinping told an American delegation of business leaders and think tanks on Wednesday that the country's economy is in crisis “healthy and sustainable”.

He also explicitly rejected narratives that claim that the Chinese economy has collapsed or has peaked.

Beijing has set its growth target for 2024 at around 5 percent, in line with last year's level and in line with market estimates but still seen as “ambitious” given the multiple challenges facing the economy. These include an ongoing housing market crisis, an aging society, a nervous private sector, worried foreign investors and complex geopolitical circumstances.

During a high-level forum in Beijing on Sunday, Chinese Premier Li Qiang addressed an audience of global CEOs and reassured them that the country would take further measures to support growth, mitigate risks and improve the business climate. He also downplayed concerns about China's real estate crash and debt problems.

According to China's official manufacturing PMI, the new orders sub-index rose to 53 in March from 49 the previous month, showing that market demand is picking up.

The sub-index for new manufacturing export orders rose to 51.3 in March from 46.3 in February, indicating an expansion in external demand during the month.

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China's non-manufacturing PMI – a measure of sentiment in the services and construction sectors – rose to 53 in March from 51.4 in February, rising for the fourth straight month.

Within the non-manufacturing PMI, the construction sub-index recovered to 56.2 in March from 53.5 in February, while the services business activity index rose to 52.4 from 51.

“Most companies in the services sector remain optimistic about future market developments…Construction companies have strengthened their confidence in recent industry developments,” said NBS's Zhao, citing the rise in sub-indices of business activity expectations in the two sectors.

The official composite PMI – a combination of the manufacturing and non-manufacturing indices – rose to 52.7 in March from 50.9 in February.

“[That] “indicates the accelerated expansion of enterprises’ production and business activities in the country,” Zhao said.