China's economy met the 5% growth target for 2024, but many feel a slowdown, as industrial gains overshadow weak consumer demand. Rising unemployment and deflationary pressures highlight deeper structural challenges, leaving skepticism over the accuracy of official data and future growth.
While China met its official 2024 growth target of 5%, many citizens are feeling the strain of a lopsided recovery. Economic gains have been concentrated in industry and exports, leaving domestic consumption weak and living standards worsening for many.
Despite achieving the target, concerns are growing that structural issues in China’s economy could worsen in 2025, particularly if the government continues to rely on debt to drive growth. Beijing’s strategy includes counteracting potential U.S. tariff hikes, which could be implemented as soon as the inauguration of President Donald Trump next week.
Industrial output outpaced retail sales, and unemployment continued to rise, signaling the challenges of a supply-driven economy running a large trade surplus but facing internal weaknesses. While factory deflation makes Chinese exports more competitive, it also deepens internal deflationary pressures and leads to shrinking corporate profits and stagnant wages.
Andrew Wang, an executive in the industrial automation sector, said his revenue fell 16% last year, prompting job cuts. He noted that for many businesses, “We need to run faster just to stay where we are.”
Despite the government's push for domestic consumption, with policies like a subsidized trade-in program for cars and appliances, many in China feel the economic gains aren’t reaching them. For example, Jiaqi Zhang, a 25-year-old investment banker in Beijing, saw her salary decrease by 30% over two years, leaving her with a general sense of unease about her future.
China's official data claims a 5.4% growth rate in the fourth quarter of 2024, a jump from earlier in the year. However, some analysts believe this growth was boosted by front-loaded exports to the U.S., ahead of any potential tariff hikes. Frederic Neumann, chief Asia economist at HSBC, warned that a greater domestic stimulus will be needed in 2025 to sustain the economy.
Though China met its target, skepticism is rising about the accuracy of the data. There is growing concern that domestic demand remains weak, which could continue to strain China’s economy and contribute to broader global trade tensions.
As for the future, economists are divided, with some predicting slower growth in 2025. Alicia Garcia-Herrero of Natixis stated that investors are unlikely to be swayed by the 5% growth target, pointing out that it’s becoming less relevant given the underlying economic challenges.
Additionally, widespread skepticism about the reliability of official data continues to grow, especially after recent commentary on GDP estimates suggested growth may have been overstated in past years.
Despite these concerns, China is expected to continue implementing stimulus measures to address its structural economic issues and maintain growth in the coming year.
An Azerbaijani delegation attended the opening ceremony of the 30th Shanghai Television Festival, one of Asia’s most prestigious media events, held in China’s Shanghai city on June 23.
The European Union’s Commissioner for Industrial Strategy urged European countries to establish joint reserves of rare earth materials to reduce dependence on China and protect against supply disruptions.
China has condemned the U.S. strike on Iran’s nuclear sites, warning it has undermined Washington’s credibility and risks triggering a broader regional crisis.
The United States has called on China to use its influence to dissuade Iran from closing the Strait of Hormuz, warning that such a move would trigger severe global economic fallout and risk major escalation following U.S. strikes on Iranian nuclear sites.
Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov and China Eximbank Chairman Chen Huaiyu signed a $500 million loan agreement for the telecom sector on June 21.
Moments ago, Iran launched missiles at Qatar. Explosions have been heard in Doha and across the country.
Gulf states and Iraq remain on high alert amid fears of Iranian retaliation following recent U.S. airstrikes.
Oil prices dropped 1% on Monday after hitting five-month highs, as markets assessed the impact of U.S. strikes on Iran and potential risks to oil transit through the Strait of Hormuz.
An Azerbaijani delegation attended the opening ceremony of the 30th Shanghai Television Festival, one of Asia’s most prestigious media events, held in China’s Shanghai city on June 23.
Ukrainian President Volodymyr Zelenskyy met King Charles at Windsor Castle on Monday during a short visit to the UK aimed at strengthening defense ties and increasing pressure on Russia.
Moments ago, Iran launched missiles at Qatar. Explosions have been heard in Doha and across the country.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
Moments ago, Iran launched missiles at Qatar. Explosions have been heard in Doha and across the country.
An Azerbaijani delegation attended the opening ceremony of the 30th Shanghai Television Festival, one of Asia’s most prestigious media events, held in China’s Shanghai city on June 23.
The U.S. Embassy in Qatar has advised American citizens to shelter in place amid rising tensions between Israel and Iran, as part of a broader global security alert issued by Washington.
Uzbekistan’s President Shavkat Mirziyoyev will pay a state visit to Mongolia on 24-25 June at the invitation of Mongolian President Ukhnaagiin Khurelsukh, aiming to strengthen bilateral relations and cooperation.
Iran has doubled its diplomatic efforts to fight back the military attacks by Israel and the US on its nuclear sites as Foreign Minister Abbas Araghchi arrived in Moscow on Monday for high-level talks with the Russian officials.
Moments ago, Iran launched missiles at Qatar. Explosions have been heard in Doha and across the country.
Gulf states and Iraq remain on high alert amid fears of Iranian retaliation following recent U.S. airstrikes.
Oil prices dropped 1% on Monday after hitting five-month highs, as markets assessed the impact of U.S. strikes on Iran and potential risks to oil transit through the Strait of Hormuz.
An Azerbaijani delegation attended the opening ceremony of the 30th Shanghai Television Festival, one of Asia’s most prestigious media events, held in China’s Shanghai city on June 23.
Ukrainian President Volodymyr Zelenskyy met King Charles at Windsor Castle on Monday during a short visit to the UK aimed at strengthening defense ties and increasing pressure on Russia.
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