Chinese Economy’s Worst Month of 2025 Puts Stimulus Back in Play

Shoppers on Nanjing East Road in Shanghai.

(Bloomberg) -- China’s economy clocked its deepest slowdown of the year in July, raising expectations for Beijing to roll out more stimulus this year to offset the impact of Donald Trump’s trade war.

A campaign to curb overcapacity at home is adding to the sting of higher tariffs. Fixed-asset investment fell the most since Covid erupted in early 2020, with industrial activity growth the weakest in eight months — a sign that a front-loading factory boom to get ahead of US duties of more than 50% is waning.

Weaker spending on infrastructure and consumption was also a key culprit behind the slowdown, revealing the extent to which private demand remains frail.

Full story at Yahoo News