Trump’s BIG blow to China! Dragon’s GDP in bad shape, all eyes on India now due to…

China’s economic growth has slowed due to rising trade tensions with the United States and weak domestic demand. In the July-September (third quarter) period, China’s economy grew only by 4.8%. Doland Trump has threatened to impose 100% tariffs on Chinese goods from November. This has increased concerns over Beijing’s ability to sustain long-term growth.​

China’s Growth Slowdown

China’s third-quarter GDP growth was at 4.8%, the lowest in a year. As the economy heavily depended on manufacturing and exports and domestic demand was less, it affected the country adversly. According to media reports weak consumer confidence has led to lower consumption and investment.​

At the same time, the domestic market was also slow and retail sales figures hit their lowest levels in the last ten months.​ Many Chinese firms reported decline in revenue despite higher sales in new markets as they lost orders from the US.​

Profitability is also under pressure as increased exports to non-US markets was at the cost of lower prices.​ President Trump’s threat to raise tariffs by an additional 100% from November has created more  uncertainty over China’s growth.​

India(BHARAT)’s Emergence As Global Growth Driver

As compared to China, India(BHARAT) has surprised the world with its economic performance. In the first quarter of fiscal year 2025-26 (April-June 2025), India(BHARAT) recorded 7.8% growth. ​

India(BHARAT) reported a 7.8% GDP growth rate in Q1 FY2025-26 with its strong domestic demand, production-linked incentive (PLI) schemes, and structural reforms.​ India(BHARAT) is emerging as a reliable and attractive destination for global manufacturing and investment.​

As a property crisis and weak consumer demand affect China, global investors are considering diversifying supply chains and capital toward India(BHARAT).​ It is making India(BHARAT) the new engine of global economic expansion.