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China’s Economy Slows to Seven-Month Low as Beijing Blames U.S. Tariffs

Stock markets rallied on speculation that Beijing will roll out new stimulus measures.

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Consumers have been reluctant to spend in China because of extreme weather and a weakness in the property sector
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Overview

  • Official data show factory output growth slowed to 5.7% year-on-year in July, the weakest pace since November.
  • Retail sales expanded by 3.7% in July, marking the slowest gain so far in 2025.
  • Urban unemployment ticked up to 5.2%, adding pressure on policymakers to support job creation.
  • National Bureau of Statistics spokesman Fu Linghui cited rising trade protectionism and U.S. tariffs as headwinds.
  • The CSI 300 index rose on stimulus hopes, but analysts warn that a property slump and weak domestic demand keep the outlook uncertain.