China’s economic expansion decelerated to 4.5% year-on-year in Q1 2025, marking the slowest quarterly growth since the pandemic recovery began, according to Reuters-polled economists. The cooling reflects:

• Export contraction: March shipments fell 7.2% amid new U.S./EU tariffs
• Property crisis: Real estate investment plunged 18.4%
• Weak consumption: Retail sales growth slowed to 5.1% from 6.8%

“The triple pressures of demand, supply and expectations have returned,” warned PBOC Governor Yi Gang.

Key trouble spots:
✓ Semiconductor exports down 28% after U.S. restrictions
✓ Youth unemployment rebounded to 14.7%
✓ Local government debt exceeds $9 trillion

Policymakers are responding with:
→ 50bps RRR cut expected this month
→ $140B in special infrastructure bonds
→ Targeted stimulus for advanced manufacturing