China's economy experienced its most pronounced slowdown of 2025 in July, largely attributed to the ongoing trade war and tariffs imposed by former President Donald Trump. Economic data released in mid-August highlighted a sharp deceleration in growth, with China aiming to achieve close to 5% growth for the year despite disappointing July figures. The slowdown has prompted expectations that Beijing will introduce additional stimulus measures in the second half of the year to counteract the adverse effects of the trade conflict. Officials from China's National Bureau of Statistics emphasized the country's robust economic foundation, resilience, and long-term growth potential despite current challenges. Key trends identified in July include a dip in overall economic performance alongside stronger household investment flows into capital markets. The trade war and tariffs continue to exert downward pressure on China's economic momentum, with analysts and government sources signaling the need for incremental policy adjustments to sustain growth.