China's factory activity continued to shrink for a second straight month in August, as new COVID infections, the worst heatwaves in decades, and an embattled property sector weighed on production, showing the struggle the Chinese economy is facing. A government survey released on Monday showed that the manufacturing Purchasing Managers' Index rose to 49.4 in August from 49 in July but remained in contraction territory. The 50-point mark separates contraction from growth.<br />'' <br />'' According to data from the National Health Commission, all mainland Chinese provinces have identified locally transmitted COVID -19 cases in the past 10 days. China has placed millions of its citizens under new lockdown after fresh outbreaks of Covid-19 in all the provinces in mainland China in the last about 10 days as the government persists in its hardline zero-COVID policy despite the pressure on the economy.<br />'' <br />''The measures affected cities from the southern cities of Shenzhen and Guangzhou to the northern port city of Dalian, and from the western metropolis of Chengdu to Shijiazhuang in central Hebei province.