China’s economic framework faces challenges from both international trade tensions and internal pressures
- China's economy faces stalling risks as trade tensions, supply chain disruptions, and domestic challenges converge, with record investment declines undermining growth. - Trump's 100% tariffs on Chinese imports and export controls, alongside Beijing's retaliatory measures, create volatility despite temporary trade truce efforts. - Sector-specific risks persist: antimony export bans are suspended, but rare earths and semiconductor disputes remain unresolved, while real estate-linked industries like Lingong
China’s economic momentum appears to be faltering as investment drops to historic lows, with a combination of trade disputes, supply chain interruptions, and domestic hurdles putting pressure on growth. Recent statistics and industry updates reveal a tangled set of challenges undermining optimism, ranging from ongoing U.S.-China trade tensions to sector-specific threats in mining and technology.
The trade conflict between the U.S. and China, which escalated further in 2025 during Donald Trump’s presidency, continues to unsettle global financial markets.
Trends in domestic investment further highlight economic vulnerability. Mining equipment manufacturer Lingong Heavy Machinery has applied for a Hong Kong IPO to support its growth, but is challenged by its ties to China’s troubled property sector.
Despite these headwinds, certain industries are demonstrating strength. China’s market for range-extended electric vehicles (REEVs) is forecast to reach 3.2 million units by 2030,
The combination of external pressures and internal weaknesses casts doubt on China’s capacity to maintain its current economic trajectory. While
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