Clear Signs Of Weakness Worry Authorities And Global Markets
The economy of China registered new signs of slowdown in August 2025, according to official data from the National Bureau of Statistics (NBS).
Industrial production and internal consumption grew at a slower pace for almost a year. This raises concerns about the sustainability of growth in the world’s second-largest economy.
Industry Loses Strength And Analysts Revise Expectations
According to the NBS, Chinese industrial production increased 5.2% in August compared to the same month in 2024.
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For the economist José Kobori, the USA gained a trump card to “blackmail” Brazil and undermine China’s influence by classifying the PCC and Comando Vermelho as terrorists, increasing the power to pressure companies, banks, and even Pix.
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The labor shortage has changed its face in Brazil: companies hire 80% more, but workers stay only 6.8 months in the job, the service market becomes a “revolving door,” and businesses spend increasingly more to train teams that soon leave.
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Chinese giant chooses SC to set up its first factory in Brazil, investing R$ 250 million and producing MRI machines costing R$ 10 million each, with 100 direct jobs and 5% of revenue allocated to research.
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After selling a unit for R$ 115 million to pay off debts, a traditional factory in SC founded in 1932 has a new R$ 64.8 million plan denied by the court and retains about 690 workers in Joinville.
Although positive, this was the slowest pace since August of last year. In addition, it fell short of the 5.6% projection by Bloomberg.
The real estate sector, which had already been pressured by a debt crisis, again registered a decline in new home prices in 65 of the 70 cities analyzed.
Experts such as Zichun Huang from Capital Economics pointed out that part of the slowdown could be linked to temporary factors, such as weather conditions.
However, the economist emphasized that underlying growth continues to decline. He also stated that the pressure for additional stimulus is likely to increase.
Declining Consumption And Its Impact On Chinese Confidence
Retail sales, the main consumption indicator in the country, increased by only 3.4% in August, the lowest growth since November 2024.
The result also fell short of Bloomberg’s expectation of 3.8%.
With declining consumer confidence, spending has decreased. This threatens the official growth target set by the Chinese government at around 5% for 2025.
Moreover, the urban unemployment rate rose to 5.3% in August, up from 5.2% the previous month.
According to the chief economist of the NBS, Fu Linghui, “there is still instability in the external environment, and many companies are facing operational difficulties.”
He highlighted that the situation requires firm measures to balance supply and demand in the domestic market.
Trade Tensions Between China And The U.S. Affect The Global Scenario
Another pressure factor is the relationship with the United States. In 2025, the two countries intensified trade and technological disputes.
Reciprocal tariffs reached three digits in some sectors, affecting global supply chains.
However, after rounds of negotiations held in Madrid last Sunday (September 14, 2025), Washington and Beijing decided to maintain the temporary reduction of tariffs until November 10, 2025.
Under this agreement, tariffs were set at 30% for the U.S. and 10% for China.
This truce brought some relief, but experts assess that instability remains high.
They warn that new tensions could again impact the global economy in the coming months.
Internal And External Risks Increase Pressure On Beijing
The combination of factors such as the real estate crisis, declining consumption, increasing unemployment, and trade tensions demonstrates that the Chinese economy faces fragility.
Even though the government maintains its 5% target, analysts emphasize that additional stimulus will be necessary. This would help avoid a deeper slowdown.
In summary, the August scenario highlights that the post-pandemic recovery has yet to achieve stability.
Therefore, investors and international authorities remain attentive to Beijing’s upcoming decisions.
It will be necessary to balance stimulus policies with external risk management.

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