The prolonged downturn in China’s real estate market and high job insecurity are slowing the pace of economic recovery, causing a ripple effect on international markets.

A broad spectrum of industries is feeling the pressure. Coffee giant Starbucks, automaker General Motors, and tech companies affected by export restrictions to China have all noted significant challenges stemming from the slowdown in China’s economy. Despite efforts by the Chinese government to stimulate consumption, the real estate market remains overburdened, leading consumers to be less inclined to spend.

China’s $18.6 trillion economy grew significantly slower than expected in the second quarter. Retail sales growth in June dropped to an 18-month low, and businesses across sectors, from automotive to apparel, have been forced to cut prices. In response, China announced new stimulus measures last month aimed at boosting consumer spending on goods and upgrading equipment. However, these efforts have yet to alleviate market concerns.

Intensifying trade tensions between China and the United States, coupled with domestic political difficulties, are posing serious challenges for multinational companies.