China Faces Economic Slowdown Amid Global Trade Tensions

China's economy grew 5.2% in the second quarter, showing resilience despite U.S. tariffs. However, analysts warn of deeper weaknesses, predicting a slowdown in the latter half. To cushion the impact, Beijing considers more stimulus measures amid falling exports and consumer confidence. Growth is expected to cool further in 2025.

China's economy continued to show resilience by growing 5.2% in the second quarter, just over market forecasts, despite ongoing U.S. tariffs. However, analysts are warning of deeper economic weaknesses, highlighting the risk of a further slowdown in the coming months.

The National Bureau of Statistics reported a quarterly GDP growth of 1.1%, with the April-June figures exceeding analysts' expectations. Yet, the outlook remains dim as exports are expected to decelerate, consumer confidence lags, and the effect of fiscal support fades.

Beijing is expected to announce fresh stimulus measures at an upcoming Politburo meeting, including possible deficit spending and continued monetary easing. Despite these efforts, China's growth for the full year is projected to slow, presenting policymakers with a significant challenge in revitalizing demand amid global trade tensions.