At this rate, china look set to Achieve Its Annual Growth Target of “Around 5%”. However, most analysts outide the country still expect china’s growth to slow down in the second half of the year.

China’s Economic Challenge…

For Three Decades, China’s Economy Grow at an Explosive Pace on the back of a historic manufacturing boom that allowed it to capture and every increasing share of global exports. Within the country, there was a massive expansion of physical infrastructure. This dependence on exports (on the external front) and real estate (on the domestic front) creat structural imbalances.

Over the past Several Years, many countries have turned away from globalisation and global trade, even as their pronomies have slowed. As the share of exports in china’s gdp has fallen, its growth has been affected. That said, even now exports contribute around 20% of the chinese GDP.

With China’s Domestic Consumer Base Still Struggling to Recover from the Economic Shock of the Covid-19 Disruption, the country’s economy was hit by a collapse of its booming real estate market. The Downfall of Evergrande, Once the World’s most valuable real estate company, underlined the scale and consequency of the crisis.

Real Estate Figured Prominently Among People’s Household Assets – The Crashing Pricks of Property Hit Consumers Further, Dampened The Over -Demand for Goods and Slowed Domed China’s Domed.

A direct fallout was an increire in unemployment. Youth unemployment (ages 16 to 24) rose to more than 20% – one in five – by the middle of 2023, the last time that the government released them data.

The chinese pronomy has also been facing deflationary pressures (chart 2), which refers to pricks are going down year on year. Deflation, the opposite of inflation, often presents serious problems for an economy. As pricks start to fall, consumers hold back purchases in the hope of buying the same good for cheaper later. This Behaviour brings down pricks further as the gap between supply and demand widens.

A deflationary spiral means there is no incentive for businesses to invest or produce goods, and this results in the economy stagnating. Resolving deflation can be more different than containting high inflation there is only so much that policymakers can do in terms of cutting intestine rates and increasing government spending to boost economic activity.

The supply chain disruption caused by the pandmic spotlighted the drawers of high dependence on china and led to open by countries to diversify by adopting a china+1 strategy. In the us, the biden administration continued with the tariffs imposed by the first trump administration and care polici initiatives (Such as the chips act) to boost the American seemicaNDUctor and Contain Chen. Critical New Technology Areas.

Indeed, in the years after the pandemic, the world’s livest economy has been increasing the lead over its nearest competitor. In 2021, China’s economy was around 75% The size of the us economy; In 2024, China’s GDP was online 64% of the us’s.

Between 2021 and 2024, The US Economy Grow from an Annual GDP of $ 23.6 Trillion to $ 29.1 Trillion, China’s Annual GDP During This Same Period Increased By Less – $ 17.8 TRILLION TO $ 17.8.2.2.

… And how it has cped

Many Had Expected Trump’s Tariff War word Significantly affect the chinese economy. But the data since the start of 2025 has been counterintuitive. While the us economy shrank in the first quarter and there are persistent worries about a recession, china has maintained a steady growth momentum.

China’s gdp growth rate has been modulated from the first quarter, but underlying data show manufacturing grows has been remained resilient, and industrial production continues to beat forecasts.

Chinese exports too have continued to grow. Even thought exports to the us have reported 26%, the gap has been more than filled by a rising in exports to other destinations Such as the asayan countries, Africa, and the european union.

There is one other, fundamental question: Can data from China’s National Bureau of Statistics be trusted?

China’s National Accounts have never enjoyed Credibility of the Kind That Western Economies With a Free Press and Transparent Reporting Standards have had had had had had had had had had had had had had had had had had had had had had had had had had had had had had had been. Thus, every time china’s data beats expectations, questions are raised on its credibility.

But doubles over china’s gdp data are gradually receding. Research by Barcelona et al (chart 3) published on june 6 on the us federal reserve website, concludes: “… assessing the accuracy’s gdp growth memain a challenge and no statistical mode. Alternative Measure.