China's Economic Challenges: Balancing Growth Amid US-Tariff Threats

In November, China's industrial output showed a slight improvement, while retail sales fell short of expectations, maintaining pressure on Beijing to increase stimulus efforts for its vulnerable economy. The new challenge comes as the country anticipates more US trade tariffs under a second Trump administration.

The National Bureau of Statistics revealed that China's industrial output grew by 5.4% year-on-year, surpassing the expected 5.3%. However, retail sales only expanded by 3.3%, down from October's 4.8%, despite major online promotions and government-subsidized programs driving sales in certain sectors, like automobiles.

At a pivotal Central Economic Work Conference, Chinese leaders vowed to loosen fiscal policy and prioritize consumption. This comes amidst suggestions of a growth target of around 5.0% for the next year, necessitating strong responses to potential US tariffs. The yuan's stability remains a priority, despite punitive trade measures.

(With inputs from agencies.)