China's GDP Growth Hits Three-Year Low Amid Consumption Slump

The widening gap between robust AI-driven exports and tepid consumer spending highlights the central challenge for Beijing. While factories remain active, the broader economy is failing to gain momentum, hampered by a property sector that refuses to recover. Fixed-asset investment dropped by 5.7% during the first half of the year, signaling a broad hesitation among investors.

Policymakers appear to be shifting their tactical approach, moving away from the large-scale stimulus packages used in previous cycles. Instead, officials are expected to lean into targeted fiscal measures aimed at reviving domestic demand and long-term infrastructure health. Whether these adjustments can counteract the current drag on growth remains the primary question for global markets observing the transition.