China’s Economic Slowdown Shows Rising Trouble, Says Commerce Minister

China’s Commerce Minister recently warned that the country’s economic situation is now “very serious and complex.” Official government numbers show China’s economy grew by 5.2% between April and June 2025.

This is slightly better than experts expected, but it is still weaker than earlier this year and points to deeper problems. Retail sales, which measure how much people are spending in shops and restaurants, grew by only 4.8% in June.

This is a sharp slowdown from May’s 6.4%. Many Chinese people remain cautious with money, partly because jobs are harder to find right now. Official data puts youth unemployment at 14.5% in June.

And with the property market still struggling, housing investments fell by over 11% in the first half of 2025. Homebuyers and builders show little confidence, with unsold homes piling up.

Trade, which has powered China’s economy for decades, also faces big setbacks. China’s exports to the US fell 21% in the most recent data, after the US raised tariffs on Chinese products.

The average US tariff on Chinese goods is now about 55%, much higher than before. While exports to other regions like Southeast Asia and Europe have risen a bit, the pain from lost American business hurts both factories and workers.

Official forecasts, including those from China’s statistics bureau and organizations like the World Bank, suggest the economy will keep slowing. Many predict annual growth of about 4.5% or slightly higher—below China’s usual target.

The government has promised new measures to boost spending and help businesses, but so far, recovery remains uneven and slow. China’s leaders say the economy’s basic strengths are still there.

However, today, their main focus is on trying to keep the situation under control and avoiding bigger shocks. Low job growth, weak consumer spending, and trade disputes with the US make for a tough combination.

For global businesses and investors, these facts mean China faces a difficult road ahead. The numbers show a real slowdown, with domestic challenges and global trade tensions coming together.

China’s future growth will depend on whether it can fix these problems and win back the trust of its own people and key trading partners.