China’s economy saw its largest slowdown of the year in July, prompting concerns about additional stimulus measures from Beijing. The country’s efforts to curb overcapacity at home are exacerbating the effects of higher tariffs and a trade war with the US.
Key indicators, including fixed-asset investment, fell sharply, marking the worst performance since the Covid-19 pandemic began in 2020. Industrial activity growth also hit an eight-month low, suggesting that a recent factory boom to prepare for US tariffs is losing momentum.
Source: https://www.bloomberg.com/news/articles/2025-08-15/chinese-economy-s-worst-month-of-2025-puts-stimulus-back-in-play