The latest macroeconomic data published in China have generated concern about the health of the second largest economy in the world. It is suggested that the country could be losing impulse in the start of the third quarter, affected by the prolonged commercial tensions with the United States and a weakening of internal consumption.
INDUSTRIAL PRODUCTION IN FINTING
According to the National Statistics Office (One), the production of Chinese factories in July increased 5.7% year -on -year, marking a significant deceleration from 6.8% observed in June. This growth represents the lowest increase since November last year.
By sectors, different behaviors were observed: the added value of mining rose 5%year -on -year, that of manufacturing by 6.2%, and the production and supply of electricity, thermal energy, gas and water by 3.3%. They highlight the added value of equipment manufacturing, which increased by 8.4%, and high -tech manufacturing, which grew 9.3%.
In the first seven months of 2025, the total added value of Chinese industrial companies increased 6.3% year -on -year, reflecting a positive trend despite the recent deceleration.
Internal consumption in deceleration
As for internal consumption, in July retail sales in China increased at an year -on -year rate of 3.7%, slowing down with respect to 4.8% of the previous month. This growth represents the lower increase since the late 2024, which suggests a decrease in domestic demand.
Agreement between the United States and China
At the beginning of the week, the United States and China announced an agreement to extend the suspension of a substantial part of mutually applied tariffs. After gathering in Stockholm (Sweden) on July 28 and 29, both nations agreed to prolong this suspension for three more months.
According to the US president, Donald Trump, this extension implies that «the rest of the elements of the agreement will remain unchanged» and establishes a new deadline for November 10.
In a joint statement, the terms of this agreement were detailed, which maintain tariffs on Chinese imports in the United States by 30% and taxes to US products in China by 10%. These figures represent a significant decrease compared to previously announced rates of 145% and 125%, respectively.