Recent data indicate that China’s manufacturing and services sectors continue to show signs of contraction or stagnation, compounding concerns about the world’s second-largest economy and its spill-over to global demand. A key composite leading indicator published by S&P Global suggests the pace of expansion has been sluggish despite policy support. The weaker inbound demand from China may drag on commodity exporters and regional trade partners, increasing downside risk for global growth in the coming quarters.