KSTR - China's Policy Focus Turns Inward, Though Trade Risks Still Loom
2025-07-10 09:18:00 ET
By Lynn Song
May data a mixed bag showing tariff headwinds and policy tailwinds
Last month’s data offers something for both China bulls and bears. On the one hand, we continue to see the impact of tariffs, with export and industrial production growth decelerating in May. They slumped to 4.7% and 5.8% year-on-year, respectively, down from 8.1% and 6.1% YoY in April. Both are within the range of expectations, though the impact from the peak tariff period continues to affect the data. Further weakening of fixed asset investment growth suggests uncertainty prevails as companies hold back on new investment. This caution is also reflected in property prices, which saw a steeper decline, a bad sign for domestic confidence....
China's Policy Focus Turns Inward, Though Trade Risks Still Loom