China remains resilient to Trump's "tariffs," but the PRC's economic growth is slowing down
Kyiv • UNN
Despite initial resilience to US tariffs, China's economy is showing a slowdown in growth. A drop in new housing prices and a slowdown in retail sales have been recorded, indicating the impact of the prolonged crisis in the real estate market.
According to new data, this month saw the fastest fall in new home prices in China. Retail sales growth in the Celestial Empire slowed by several percent. So even if China's economy, according to analysts, initially exceeded expectations in countering US President Donald Trump's "tariffs," as of now, the protracted crisis in China's real estate market is taking its toll. BBC writes, UNN reports.
Details
At the beginning of summer, China managed to avoid a sharp economic downturn, amid attempts at pressure from the US. This was partly due to measures announced by Beijing to support the economy. A "fragile" trade truce with Washington also contributed to this, the BBC reminds.
According to official data, the world's second-largest economy grew by 5.2% in the three months to the end of June, compared to the same period last year. Better than the 5.1% many economists predicted
The country's services sector, which includes industries such as transport, finance, and technology, also achieved success in early summer.
But according to current data for 2025, the real estate sector in China continues to face difficulties. And all this despite several rounds of measures to support real estate prices.
In June, retail sales growth slowed to 4.8% compared to the previous year, while in May they grew by 6.4%.
Economist Gu Qingyang from the National University of Singapore believes that the second half of the year will likely be more uncertain for China's economy.
Stronger government stimulus may be needed. Nevertheless, achieving the annual growth target of 5% still seems quite achievable
Some economists expect China not to reach its annual growth target of "around 5%" this year.
The real question is by how much. We believe it will defend a lower bound of 4%, which remains the minimum politically acceptable level
Recall
China plans to purchase 140 million barrels of oil for its strategic reserves by the first quarter of 2026, as long as prices remain below $80 per barrel. This will ensure a high level of imports and soft commercial demand.