Chinese factories are experiencing significant production slowdowns due to the combination of the lunar new year closures and increased US tariffs, according to recent data. The slowdown is raising concerns about global market stability as the impact on trade balance and employment begins to surface. 5.9% growth in industrial output during January-February 2025 reflects mounting pressure from both internal factors like reduced domestic demand and external pressures like US tariffs, causing a sharp decline of 42% in orders from US businesses. China’s government is responding with a RMB 300 billion stimulus package to boost domestic consumption and alleviate the economic slowdown. The impact on global markets has also sparked anxieties about cryptocurrency market fluctuations. Experts believe that if these trade tensions persist, the slowdown may continue, but if the government intervenes with its stimulus program it could stabilize domestic demand. This article is for informational purposes only and does not constitute financial or investment advice.