NYT: China's Economy Under Pressure from Iran-US War, Consumer Spending Slows Further
According to the New York Times, rising oil and natural gas prices due to the Iran-US war are starting to drag on China's economy, leading to a further slowdown in already weak consumer spending and impacting key export sectors. Automotive sales have been particularly affected, making it difficult to achieve economic growth targets.
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- 📰 Published: April 28, 2026 at 13:53
- 🔍 Collected: April 28, 2026 at 14:31 (38 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 14:34 (3 min after Collected)
Iran-US War Key News
Central News Agency
(Central News Agency, Taipei, 28th) The New York Times reported that rising oil and natural gas prices triggered by the Iran-US war are beginning to drag on China's economy, with already weak consumer spending slowing further and key export industries being hit.
The New York Times Chinese website reported the above today, mentioning that China's auto sales declined in March, and the decline further expanded in April. Household consumption sentiment has become cautious, and traffic in the catering and hotel industries is also decreasing. These increasingly prominent pressures indicate that even with China's vast strategic oil reserves and heavy investment in renewable energy, it is difficult to resist the impact of global economic pressures.
Hong Kong's Ming Pao earlier reported that customs data showed China's crude oil imports increased by 15.8% year-on-year in the first two months of this year. Foreign news, citing American scholars, pointed out that China's strategic reserves hold approximately 1.4 billion barrels of crude oil, which would be sufficient to cover a supply gap of about 6 months even if Middle Eastern crude oil imports were completely cut off.
The New York Times report stated that for several weeks, China's economy seemed to have weathered the shock smoothly, and relatively strong economic data in March also confirmed this view; however, as the war continues into its ninth week with no clear end in sight, cracks have begun to appear.
The report quoted Alicia Garcia Herrero, Chief Economist for Asia Pacific at Natixis, as saying that "(China's) economy is slowing down" and may struggle to achieve this year's economic growth target of 4.5% or higher.
The report states that automotive production and sales data are one of the most intuitive signals of economic decline and a leading indicator of economic problems. Automobiles are the second-largest consumption category for Chinese households after real estate, and the automotive industry simultaneously drives demand for steel, glass, and other materials.
Data from the China Passenger Car Association showed that in the first 19 days of April, China's retail car sales decreased by as much as 26% year-on-year. Although part of the decline stemmed from weak electric vehicle sales after the expiration of tax incentives in December last year, gasoline vehicle performance was even worse, with sales plummeting by nearly 40%.
Declining sales led to a large backlog of unsold vehicles in dealership showrooms, which in turn triggered production cuts. In the first two weeks of April, China's automotive production decreased by 27% year-on-year. Although exports maintained growth, the decline was still significant.
The report said that on the surface, China's economy remains resilient, but a deeper analysis reveals underlying vulnerabilities.
China's retail sales growth slowed in March, with a year-on-year increase of only 1.7%. The China Federation of Logistics & Purchasing pointed out that unsold inventory continues to accumulate. Experts believe that inventory accumulation may further drag down future economic growth.
Yesterday, China's industrial profit data showed that industrial profits remained strong in March. The report said this could provide some buffer for the economy to resist the economic downturn, but most of this growth came from chemical and energy companies, which stockpiled large amounts of oil and natural gas at low prices before the war, and are now gaining considerable one-time profits from rising oil prices.
The report stated that with sufficient strategic oil reserves and large refining capacity, China's economy has been impacted by the Iran-US war far less severely than its Asian neighbors. In addition, China only allows state-owned oil companies to pass on half of the oil price increases to consumers, reducing the pressure on consumers due to rising fuel costs. (Editors: Chou Hui-ying / Chen Kai-yu) 1150428
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Central News Agency
(Central News Agency, Taipei, 28th) The New York Times reported that rising oil and natural gas prices triggered by the Iran-US war are beginning to drag on China's economy, with already weak consumer spending slowing further and key export industries being hit.
The New York Times Chinese website reported the above today, mentioning that China's auto sales declined in March, and the decline further expanded in April. Household consumption sentiment has become cautious, and traffic in the catering and hotel industries is also decreasing. These increasingly prominent pressures indicate that even with China's vast strategic oil reserves and heavy investment in renewable energy, it is difficult to resist the impact of global economic pressures.
Hong Kong's Ming Pao earlier reported that customs data showed China's crude oil imports increased by 15.8% year-on-year in the first two months of this year. Foreign news, citing American scholars, pointed out that China's strategic reserves hold approximately 1.4 billion barrels of crude oil, which would be sufficient to cover a supply gap of about 6 months even if Middle Eastern crude oil imports were completely cut off.
The New York Times report stated that for several weeks, China's economy seemed to have weathered the shock smoothly, and relatively strong economic data in March also confirmed this view; however, as the war continues into its ninth week with no clear end in sight, cracks have begun to appear.
The report quoted Alicia Garcia Herrero, Chief Economist for Asia Pacific at Natixis, as saying that "(China's) economy is slowing down" and may struggle to achieve this year's economic growth target of 4.5% or higher.
The report states that automotive production and sales data are one of the most intuitive signals of economic decline and a leading indicator of economic problems. Automobiles are the second-largest consumption category for Chinese households after real estate, and the automotive industry simultaneously drives demand for steel, glass, and other materials.
Data from the China Passenger Car Association showed that in the first 19 days of April, China's retail car sales decreased by as much as 26% year-on-year. Although part of the decline stemmed from weak electric vehicle sales after the expiration of tax incentives in December last year, gasoline vehicle performance was even worse, with sales plummeting by nearly 40%.
Declining sales led to a large backlog of unsold vehicles in dealership showrooms, which in turn triggered production cuts. In the first two weeks of April, China's automotive production decreased by 27% year-on-year. Although exports maintained growth, the decline was still significant.
The report said that on the surface, China's economy remains resilient, but a deeper analysis reveals underlying vulnerabilities.
China's retail sales growth slowed in March, with a year-on-year increase of only 1.7%. The China Federation of Logistics & Purchasing pointed out that unsold inventory continues to accumulate. Experts believe that inventory accumulation may further drag down future economic growth.
Yesterday, China's industrial profit data showed that industrial profits remained strong in March. The report said this could provide some buffer for the economy to resist the economic downturn, but most of this growth came from chemical and energy companies, which stockpiled large amounts of oil and natural gas at low prices before the war, and are now gaining considerable one-time profits from rising oil prices.
The report stated that with sufficient strategic oil reserves and large refining capacity, China's economy has been impacted by the Iran-US war far less severely than its Asian neighbors. In addition, China only allows state-owned oil companies to pass on half of the oil price increases to consumers, reducing the pressure on consumers due to rising fuel costs. (Editors: Chou Hui-ying / Chen Kai-yu) 1150428
Choose to stand with facts. Every sponsorship you provide is a force to protect press freedom.
Download the Central News Agency "First-Hand News" APP to stay updated with the latest news.
The text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.