China’s Factory Push Exposes Weakness in Domestic Demand

A new report points to a widening imbalance in China’s economy, where a strong manufacturing drive is not translating into a broader recovery in domestic demand. The report says the gains are especially visible in electric vehicles and batteries, even as household consumption and private investment remain subdued. The divide reflects President Xi Jinping’s development strategy, which prioritizes advanced manufacturing and strategic industries. But the report says that focus has not resolved the weakness in internal economic activity that continues to weigh on the recovery. Data cited for the first nine months of 2026 showed China’s economy grew by 4.6%….