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China's Economic Slowdown Amid U.S. Trade Tensions

China's economy shows signs of slowing, with retail sales and property investments below forecasts, impacted by ongoing trade tensions with the U.S.

Overview

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China's economy demonstrated a slowdown in April, with retail sales rising only 5.1% and property investments plummeting 10.3%. High tariffs from the U.S. under President Trump have contributed to these declines, although industrial output still showed growth of 6.1%. National statistics highlight the need for consolidation in economic recovery amidst external shocks, while fixed asset investments increased by 4%. Analysts remain concerned about consumer sentiment and the risks of prolonged tariffs affecting future growth.

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Analysis

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  • China's economy shows signs of slowing, particularly in retail sales and investment, due to Trump's trade war and high tariffs.
  • Positive trends were noted, but external shocks remain a significant concern for the country's economic recovery.
  • Consumer sentiment in the U.S. is negatively affected by the trade tensions, raising fears of inflation and impacting international trade.

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Center (2)

FAQ

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The ongoing U.S. trade tensions have contributed to a slowdown in China's economy, particularly affecting retail sales and property investments. However, industrial output remains resilient despite these challenges.

China's GDP grew by 5.4% in the first quarter of 2025, exceeding expectations due to a surge in exports.

Analysts are concerned about the sustainability of China's export-driven growth due to ongoing trade tensions and potential consumer sentiment issues.

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