Just got back from a short trip in China. The locals were telling me the economy has pretty much ground to a halt. Brace…
— David's Capital (@davids_capital) August 18, 2025
Chinese Economy’s Worst Month of 2025 Puts Stimulus Back in Play
(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.