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China’s economic framework faces challenges from both international trade tensions and internal pressures

China’s economic framework faces challenges from both international trade tensions and internal pressures

Bitget-RWA2025/11/14 13:56
By:Bitget-RWA

- 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.

, Trump’s enforcement of 100% tariffs on Chinese goods and restrictions on vital software exports, along with China’s countermeasures, have fostered an unpredictable climate. Although recent diplomatic efforts, such as an October ceasefire negotiated after discussions in South Korea, have eased tensions temporarily, they have not addressed the fundamental issues. For example, on American agricultural products but continues to uphold duties related to Trump’s “Liberation Day” tariffs. At the same time, U.S. authorities have indicated a possible postponement of restrictions on Chinese tech companies, yet .

China’s economic framework faces challenges from both international trade tensions and internal pressures image 0
Industry-specific problems are deepening the economic slowdown. In the antimony industry, with an American industrial textile producer, prompted by China’s temporary halt on antimony export restrictions. Nevertheless, -including China’s broader export controls on rare earth elements-continue to threaten supply security. The global automotive chip market is also facing turbulence after the Nexperia incident, where led China to agree to negotiations with Dutch authorities.

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.

, the company’s revenue from aerial work platforms—which are closely linked to construction—fell by 45% year-over-year in the first half of 2025, reflecting the negative impact of the real estate downturn. In addition, out of concern for memory chip shortages, noting a decline in its domestic market share.

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,

and government incentives. Local automakers such as Leapmotor and Li Auto are adopting REEV technology, using it as a transitional solution between conventional gasoline engines and full electric vehicles. However, this sector’s expansion stands in contrast to the broader economic stagnation, as investment in key areas is still hampered by trade restrictions and weak domestic consumption.

The combination of external pressures and internal weaknesses casts doubt on China’s capacity to maintain its current economic trajectory. While

seek to broaden international cooperation, China’s dependence on U.S. and European markets for major industries remains a significant vulnerability.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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