China’s Economy Slows to 4.3%: Why It Matters for the World-and for India

Summary of this article China’s GDP expanded 4.3% in the second quarter of 2026, missing Beijing’s growth target as weak consumer spending, a prolonged property downturn and slowing domestic demand weighed on the economy. While exports of EVs, batteries and AI-related products remain resilient, rising global trade barriers, deflationary pressures and mounting local government debt are making it harder for China to revive broad-based economic growth. A slowing China could accelerate the ‘China Plus One’ manufacturing shift towards India, but cheaper Chinese exports may also intensify competition for domestic industries, particularly steel and chemicals China’s economy expanded 4.3% year-on-year in…