29 August 2025

China’s slowdown puts the world economy at risk

John Rapley

China’s economy may be slowing again. While the country has weathered the storm of Donald Trump’s trade war better than the United States — thanks to a more diversified set of trade relationships — its domestic economy is beginning to sputter. Exports rose in the last quarter, even as American exports fell, but internal economic growth is less promising.

Industrial output grew 5.7% last month, which is robust by Western standards but still marks a significant reduction from June’s 6.8% rate. More worrying yet is that retail sales grew only 3.7%, sharply down from the previous month’s 4.8% pace.

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