China’s Economic Slowdown Deepens as Investment Plunges to Historic Lows

China's economy hits the brakes—hard. Investment freefall spells trouble for the world's second-largest economy.

### The Great Stall of 2025

Beijing's economic engine is coughing black smoke. Factory gates are creaking shut as capital flees faster than investors from a crypto dip.

### Numbers Don't Lie (But Governments Might)

Record investment slumps don't happen in vacuum. They're what happens when you mix property bubbles, trade wars, and enough stimulus to drown a dragon.

### Wall Street's Cynical Take

'But look at the GDP growth!' cry the bulls—ignoring that 3% growth in China now feels like recession. Even blockchain startups are moving faster than this recovery.

Investments in China fall to the lowest level ever

Property investments are declining rapidly due to developers experiencing fewer sales, less available capital to borrow, and an increase in unfinished housing projects. At the same time, companies are concerned about weak demand at home and abroad, so they are spending less on new projects. Experts say these weaknesses could have a lasting impact on the country for many months if the government does not address them promptly. 

Factories now have fewer orders, so they’re producing less because industrial output increased by only 4.9% in October, lower than the 6.5% growth in September. Some analysts suggest that factories worked harder in September to complete orders before the long holiday, which is why the slowdown in October appears worse. However, the decline still shows that the industrial sector is losing speed. 

China has to depend on local demand because the country is selling fewer goods abroad. Global demand has weakened, as other countries face their own economic problems, and analysts say the combination of domestic and international weakness makes it harder for companies to recover. 

Customers are also spending less due to low wages in the falling economy. Most families are concerned about job security, income growth, and the property market, so they are spending less, which in turn reduces investments in new goods and services. Retail sales ROSE by only 2.9% in October, marking the fifth consecutive month of slowing growth.

Economists suggest that the government can increase subsidies for home appliances, electric cars, and certain services. However, China needs long-term changes to make households feel more secure, so lawmakers need to improve social welfare, income distribution, and job security. 

China’s economy is facing pressure from weak spending

Both domestic and global problems are affecting China’s growth, but the government is acting carefully rather than quickly to boost the economy. Businesses are uncertain about the future due to economic changes and reforms; as a result, many companies are not investing in new projects or hiring additional staff. Customers are also saving more and spending less because job growth is slow and incomes are rising slowly, which in turn drags the economy down. 

Trade tensions with the U.S. also exacerbated the situation. However, President TRUMP and Xi reached a deal late in October that could help lower tariffs and increase exports in the future. Nevertheless, even with this new arrangement, demand from other countries remains unpredictable.

China’s trading partners in Europe have also raised concerns about the volume of Chinese goods entering their countries, which could create future friction in global trade. It could also limit China’s ability to sell to some countries, as they also want to reduce their dependence on the Asian country. 

The National Bureau of Statistics in China said officials will “actively support the implementation” of current policies. That means the government is cautious and wants to avoid excessive borrowing. Yet, despite those pledges, Beijing has already thrown its support behind approximately 1 trillion yuan ($141 billion) worth of stimulatory projects for infrastructure, local government, and other areas central to spurring economic expansion in recent weeks.

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