China’s manufacturing sector is holding up despite the Iran war, even as the country’s broader economy showed vulnerabilities.

Factory activity expanded in April for a second straight month, driven by persistent demand for exports — a trend that suggests higher oil prices haven’t blunted industrial momentum. But cracks are emerging on the consumer side: Car sales — seen as an early bellwether — are falling, and households are growing more cautious.

Those economic challenges threaten to complicate US President Donald Trump’s planned meeting with Chinese leader Xi Jinping next month, The New York Times wrote: Xi has called for the reopening of the Strait of Hormuz, and the economic ripple effects are now poised to be “the primary topic” of the summit.