Despite this slowdown, the Chinese National Bureau of Statistics noted that the economy has displayed resilience, benefiting from government measures aimed at stimulating growth and ongoing negotiations with U.S. officials over tariffs. Manufacturing has been a bright spot, expanding by 6.4%, driven by increased demand for modern technologies like 3D printing, electric vehicles, and robotics. Meanwhile, the services sector also saw growth, but retail sales growth diminished, falling to 4.8% when compared to the previous June.

Moreover, housing prices have shown troubling signs, with official reports indicating the steepest monthly decline in new home prices for eight months, highlighting ongoing challenges in the real estate market regardless of government intervention.

Economists remain cautious, predicting that China could fall short of its annual growth target of around 5%, potentially stabilizing at a politically acceptable minimum of 4%. The trade war, which saw the U.S. impose substantial tariffs on Chinese imports and retaliatory measures from China, remains a critical factor in the economic outlook. Current negotiations have provided some relief, but a long-term resolution is still pending, with a deadline approaching for a comprehensive trade agreement between the two nations.