China's Economic Slowdown: Navigating Challenges Amid Trade Pressures

China's economy faces pressure as factory output and retail sales hit their weakest point in over a year. The trade tensions with the U.S. under Trump's administration highlight the need for structural reforms to balance export reliance with boosting domestic consumption.

China's factory output and retail sales have slumped, reflecting the slowest growth in over a year and intensifying the pressure on policymakers to reform the $19 trillion export-reliant economy. Supply and demand issues threaten further economic deceleration.

Traditionally, China could spur growth by boosting exports or funding large-scale infrastructure projects. However, U.S. President Donald Trump's tariff war underscores China's dependence on the U.S. market. Beijing faces limits in achieving growth solely through industrial expansions and infrastructure projects.

Recent economic indicators show a troubling trend. Industrial output grew just 4.9% year-on-year in October, falling short of forecasts. Retail sales rose only 2.9%, marking a significant slowdown. With new home prices declining and fixed asset investment shrinking, the urgency for structural reform becomes more apparent for China's leadership.

(With inputs from agencies.)