SHANGHAI, April 30 Reuters China stocks slipped on Friday, after the countrys factory activity growth slowed in April, with Shanghai shares set for weekly decline on worries over policy tightening and SinoU.S. tensions.

The CSI300 index fell 0.3 to 5,150.71 by the end of the morning session, while the Shanghai Composite Index lost 0.5 to 3,457.09.

For the week, CSI300 firmed 0.3, while SSEC eased 0.5.

Chinas factory activity expanded at a slower pace and missed forecasts in April as supply bottlenecks and rising costs weighed on production and overseas demand lost momentum.

Despite the soft data, analysts and traders said overall solid economic growth allowed Beijing more leeway to rein in bubbles in its financial markets.

Chinas economic recovery quickened sharply in the first quarter with record growth of 18.3, shaking off the hit from last years slump.

People are still worried about Chinas monetary policy, and the market remains pessimistic given the current monetary conditions, said Song Zhenyu, a fund manager at Beijing Jiayi Asset Management Company.

Song said any gradual policy shift would happen with a tightening bias as the central bank had recently noted the rapid rise in commodities prices, raising worries over inflation.

Tensions between Beijing and Washington also added to the pressure on the market.

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