(Corrects last paragraph to clarify analyst Xu’s proposal to a third of consumption subsidies, not a third round of consumption subsidies)

BEIJING, Nov 30 (Reuters) – China’s factory activity shrank for an eighth month in November while services cooled, highlighting the dilemma facing policymakers over whether to press ahead with tough structural reforms or roll out more stimulus to lift domestic demand.

The manufacturing purchasing managers’ index rose to 49.2 in November from 49.0 in October, the National Bureau of Statistics’ survey showed on Sunday, remaining below the 50-point mark separating growth from contraction. It was in line with analysts’ forecast of 49.2 in a Reuters poll.

The data reflects manufacturers’ difficulty in sustaining a recovery after COVID-19, compounded by a

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