China's Economy Faces Downturn as Trade Tensions Mount

China's economy exhibited resilience in the second quarter of 2023, slowing less than expected despite rising U.S. tariff pressures. Analysts, however, caution that internal and external challenges loom as weak domestic demand persists.

Official data revealed a 5.2% year-on-year GDP growth from April to June, slightly above forecasts. Nonetheless, the outlook dims for the latter half, with potential further stagnation as export momentum and consumer confidence wane.

In response, Beijing ramps up infrastructure and consumer support. Yet, without significant stimulus, the risk of entrenched deflation and property market downturn threatens to challenge China's economic stability further.

(With inputs from agencies.)