Chinese Economy Faces Deterioration with Slow Growth Due to Imbalanced Exports and Domestic Demand

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China’s economy is encountering challenges as it grew at a sluggish pace in the second quarter of 2026, marking its slowest growth rate since late 2022. Analysts anticipated a more robust performance, but China’s gross domestic product (GDP) expanded by only 4.3 per cent, following a 5 per cent growth in the previous quarter. The downturn was driven by persistent weaknesses in consumer spending, property, and investment, overshadowing the relatively stronger exports and industrial output. This unbalanced growth trajectory is dividing China’s economy, with the export and manufacturing sectors, particularly high-tech fields linked to artificial intelligence, supporting growth. At the…

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