Chinese Economy’s Worst Month of 2025 Puts Stimulus Back in Play

China’s economy clocked its deepest slowdown of the year in July, raising expectations for Beijing to roll out more stimulus this year to offset the impact of Donald Trump’s trade war.

A campaign to curb overcapacity at home is adding to the sting of higher tariffs. Fixed-asset investmentfell the most since Covid erupted in early 2020, with industrial activity growth the weakest in eight months — a sign that a front-loading factory boom to get ahead of US duties of more than 50% is waning.

Weaker spending on infrastructure and consumption was also a key culprit behind ...