China Economy Faces Strains Amid Sluggish Data

China’s economy continues to face multiple risks and challenges, the statistics bureau said, citing August 2025’s weak performance amid mounting global headwinds. Activity was further weighed down by extreme weather, with record heat—the hottest since 1961—and the longest rainy season for the same period. Industrial production in the month grew 5.2% yoy, missing forecasts of 5.8% and marking the slowest pace in a year, while retail sales rose 3.4%, the weakest in eight months and below the 3.8% consensus. The jobless rate edged up to a six-month high of 5.3%, and property investment kept contracting, highlighting the sector’s prolonged slump under tighter rules on speculation and debt. With domestic demand remaining weak, Beijing is pushing manufacturers to seek new markets to cushion against U.S. President Trump’s unpredictable trade policy. Officials also warned that aggressive price cuts are squeezing employers, pledging to stabilize jobs, businesses, markets, and expectations.