Story perspectives

China's Economy Struggles Amid Weak Demand and Deflation

6/30/2025

28 4

Summary

Story summary

China's economy is improving, despite challenges like deflation and weak employment.
Manufacturing activity contracted for the third consecutive month, with the official PMI slightly rising to 49.7.
Weak domestic demand is worsened by a property crisis and elevated U.S. tariffs.
Industrial profits dropped 9.1% in May, leading to calls for fiscal stimulus.
Premier Li Qiang stresses the importance of enhancing domestic consumption for sustainable growth.

1 of 1

Story summary

China's economy is improving, despite challenges like deflation and weak employment.
Manufacturing activity contracted for the third consecutive month, with the official PMI slightly rising to 49.7.
Weak domestic demand is worsened by a property crisis and elevated U.S. tariffs.
Industrial profits dropped 9.1% in May, leading to calls for fiscal stimulus.
Premier Li Qiang stresses the importance of enhancing domestic consumption for sustainable growth.