China misses growth target for first time since Covid as Iran turmoil roils global trade

An American seismologist, Youlin Chen, has been detained in China on espionage charges for nearly two years, escalating tensions between Washington and Beijing. Chen, a Chinese-born U.S. citizen, was arrested in November 2024 and formally charged with spying in May 2025, after conducting U.S.-funded research on detecting North Korean nuclear tests using publicly available seismic data. His family and advocacy groups only recently revealed his detention publicly, with U.S. Secretary of State Marco Rubio designating him as "wrongfully detained" in March 2026. Despite U.S. President Donald Trump reportedly raising the issue with Chinese President Xi Jinping, Chen remains in custody amid concerns for his health and treatment. China maintains that the case is being handled lawfully and denies any wrongful detention.

Meanwhile, China's economic performance has shown recent weakness, with its second-quarter 2026 GDP growth missing analysts' expectations and marking its slowest pace since the end of 2022, a period impacted by the COVID-19 pandemic. This recent slowdown comes as China also set its lowest annual economic growth target in over three decades for 2026, aiming for 4.5% to 5%. This target represents the first time since 1991 that Beijing's official growth goal has fallen below 5%, reflecting mounting domestic challenges like a property slump and weak consumer demand, and a strategic shift towards more resilient growth.