Archive · 26 Jul 2026
China's Economy Slows Amid Domestic Demand Decline
China's economy is growing slower because people in China are not buying as many things as before.
This is making it hard for the government to spend money on building roads, schools, and hospitals.
Even though China is selling more things to other countries, especially high-tech products, it is not buying more things from other countries.
This is causing problems with the European Union, which is trying to protect its own businesses from too many Chinese goods.
China is not likely to change its ways because it needs to keep selling things to other countries to keep its economy going.
The European Union is trying to find ways to make sure trade is fair, but China is not making it easy.
China's GDP growth slowed to 4.3% in Q2 2023 due to declining domestic demand.
Fixed-asset investment, including real estate, dropped significantly.
Domestic car sales collapsed by 16.1% in June year on year.
Exports increased by 27.0% in June, with high-tech products performing well.
EU is reviewing trade defense tools to address Chinese trade practices.
- Who
- China's economy and the EU
- What
- China's GDP growth slows due to declining domestic demand and reliance on exports
- When
- Second quarter of 2023
- Where
- China and the European Union
- Why
- Structural imbalances and weak consumer confidence are contributing to the slowdown
China's Export Reliance
EU Trade Defense
Export Growth
China's Export Reliance
China's export growth is strong, particularly in high-tech products, indicating continued potential for expansion.
EU Trade Defense
The EU is reviewing its trade defense tools to address the influx of Chinese goods and unfair trade practices.
Trade Negotiations
China's Export Reliance
China is unlikely to make concessions in EU trade negotiations due to domestic economic pressures.
EU Trade Defense
The EU aims to address trade imbalances and unfair practices through stronger trade defense measures.
- GDP Growth
- 4.3% in Q2 2023
- Fixed-Asset Investment (FAI) Decline
- Real estate investment dropped by 18.0%
- Domestic Car Sales
- Collapsed by 16.1% in June year on year
- Exports Growth
- Increased by 27.0% in June
- Imports Growth
- Increased by 36.0% in June on a USD value basis
- EU Trade Defense
- Reviewing tools to address Chinese trade practices