China’s Economy Looks More Resilient Than it Truly Feels

By some measures, China’s economy appears resilient, buoyed by strong exports and breakthroughs in artificial intelligence (AI) and other advanced technologies.

Some economists believe the world’s second-largest economy is growing more slowly than official figures suggest.

But that is not how it feels for many ordinary Chinese, who have been enduring the strain of weak property prices and uncertainty over jobs and incomes, Chan Ho-him reported for the Associated Press (AP).

While some industries are thriving thanks to government support for technologies such as AI and electric vehicles, small business owners report difficult conditions as customers cut back on spending.

Some economists believe the world’s second-largest economy is growing more slowly than official figures suggest, even as China remains on track to meet its official 2025 growth target of about 5%.

Beijing has avoided a damaging full-blown trade war with Washington after President Donald Trump struck a truce with Chinese leader Xi Jinping, but longer-term challenges persist.

Business is “very tough” right now because people lack disposable income, said Xiao Feng, a billiards hall owner in Beijing.

“It seems the wealthy don’t have the time, and ordinary folks don’t have money to spend,” he said. “After deducting all costs — including rent, labor, and utilities — I’m just breaking even.”

Xiao and his wife, a nurse, have a 10-year-old son. With her stable income, she is now the household’s primary breadwinner.