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China's Economy Slows Sharply as Trump's Trade War Starts to Take Toll
The Straits Times
|August 16, 2025
Growth in factory activity and retail sales dips, with urban unemployment at 5.2%
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BEIJING - China's economy slowed across the board in July with factory activity and retail sales disappointing, suggesting US President Donald Trump's trade war is starting to weigh on the world's No. 2 economy.
Production at Chinese factories and mines rose at the slowest rate since November and expanded 5.7 per cent in July from a year earlier, according to data released by the National Bureau of Statistics (NBS) on Aug 15, compared with June's gain of 6.8 per cent.
The median forecast of economists in a Bloomberg survey was for an increase of 6 per cent.
Retail sales grew 3.7 per cent year on year in July, the least in 2025, down from 4.8 per cent in the previous month.
Expansion in fixed-asset investment in the first seven months of the year decelerated to 1.6 per cent, as a contraction in the real estate sector deepened. The urban unemployment rate worsened more than expected to 5.2 per cent.
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