China's economic growth slows to weakest pace in three years despite export boom
China's economic growth slowed to 4.3% in the second quarter, falling short of expectations due to weak domestic demand and investment. While exports in sectors like electric vehicles and AI remain strong, the government faces challenges in balancing high-tech manufacturing growth with broader economic stability.
Why it matters
As the world's second-largest economy, China's uneven growth trajectory impacts global supply chains and international trade policies regarding state subsidies.
China's economy lost pace in the April-June quarter, despite rising exports as weak domestic demand and investment dragged growth to its slowest pace in more than three years. Official data released on Wednesday showed that the economy expanded at an annualised 4.3%, down from 5% in the January-March quarter and below forecasts. Exports continued to be a bright spot for the economy with the customs data showing that outbound shipments rose 17.6% in the first half of the year compared with the same period a year ago, while exports climbed 27% in June.
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