China’s Growth Stalls as Domestic Consumption Falters

The second-quarter figures missed official annual targets and market expectations, forcing Beijing into a difficult policy position. While officials face mounting pressure to deploy aggressive stimulus, the government remains constrained by long-standing debt concerns that limit the scope for large-scale financial intervention.

Analysts emphasize that the challenge extends beyond raw numbers. The current growth model relies heavily on external demand, leaving the economy vulnerable to shifting trade policies and looming tariff risks. Until China addresses the structural drag caused by sluggish wage growth and the property sector crisis, the reliance on exports will likely remain a fragile substitute for a healthy domestic engine.