Data released on Saturday showed that China's November factory activity rebounded for the first time after six consecutive months of slowdown.
Purchasing Managers' Index (PMI), a measure of activity in the country's factories, rose to 50.2 in November, up from 49.3 in the previous month, the National Bureau of Statistics said.
The 50-point mark separates growth and contraction each month.
The improvement comes despite the threat of fresh tariffs on the country's exports if the US and China fail to sign their partial trade deal.
A sub-index of new export orders climbed to a 7-month high of 48.8, however, it remained in contraction as demand wanes for China's exports abroad.
There is optimism around Beijing and Washington edging closer towards a partial deal to end their trade war that has been dragged on for almost 20 months.
The two largest economies in the world have slapped tariffs of nearly half a trillion dollars in two-way trade.
The Chinese government took several measures to stimulate its economy that saw its slowest pace of growth in almost 3 decades during the July-September quarter.