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[Halafi Mengedi]

China's economic momentum is projected to continue slowing and could create bad news for American companies.

"While China has been an important trading partner for the U.S., China accounts for 9% of America’s exports," Erin Walsh, senior research fellow at the Heritage Foundation's Asian Studies Center, told Fox News Digital. "The slowdown hurts large U.S. companies with considerable business in China and, in particular, the construction and manufacturing sectors."

Walsh's comments come as projections show China's economy is likely to miss its 5% growth target this year. The country is also battling a record high youth unemployment rate of over 21% and a property market bubble that has already burst, according to a report from Reuters.

The slowdown has prompted Beijing to take action, with China surprising markets last week by cutting interest rates. But economists have warned the cuts are likely not enough to make a meaningful difference, while others have warned deeper cuts risks depreciation of the Yuan.

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President Joe Biden and China's President Xi Jinping meet on the sidelines of the G-20 Summit in Nusa Dua on the Indonesian resort island of Bali Nov. 14, 2022. Saul Loeb/AFP via Getty Image
President Joe Biden and China's President Xi Jinping meet on the sidelines of the G-20 Summit in Nusa Dua on the Indonesian resort island of Bali Nov. 14, 2022. Saul Loeb/AFP via Getty Image
© SAUL LOEB/AFP via Getty Image
"The People’s Bank of China made Interest rate cuts to increase lending and spur the economy," Walsh said. "The stimulus measures, some believe, have not gone far enough."