China's Economic Balancing Act: Growth Amidst Unease

China's economy grew by 5% in 2024, matching targets but exposing inequalities as industrial growth outpaced consumer benefits. The country's export-driven strategy is causing imbalances, increasing tariffs, and property crises, raising skepticism about future growth sustainability, while domestic consumption efforts appear limited.

China's economy expanded by 5% in 2024, hitting its growth target, but many citizens report declining living standards. The country's industrial growth outpaced consumer benefit, exposing deep-seated economic inequalities. As structural imbalances persist, concerns about long-term sustainability mount, especially with impending U.S tariff hikes.

The export-led strategy boosting China's competitiveness has resulted in domestic economic strains, including deflationary pressures. Executives like Andrew Wang are witnessing dwindling revenues and job cuts, highlighting the disparity between official statistics and everyday experiences. Analysts warn such imbalances may prompt further strain on investment sentiments in the coming years.

Following lackluster consumer policies and widespread skepticism about official data, apprehension pervades China's markets. Prominent economists like Gao Shanwen raise alarms about overstated growth figures, intensifying public doubt about the nation’s economic narrative. The looming question remains: can domestic consumption keep pace with industrial output?

(With inputs from agencies.)