Will China's Economy Rebound?

Beijing is taking steps to boost the country's economy, facing a prolonged period of lower growth after decades of rapid expansion and globalization. The Chinese GDP growth in the second quarter was lower than market expectations, indicating the need for further measures to stimulate growth. The country's leaders are taking steps to boost the country's economy by addressing issues in the property sector, stabilizing employment, stimulating domestic consumption, and resolving local debt risks. The Chinese Communist Party has set a growth target of 5% for 2023, lower than in previous years. China's economic recalibration from the property sector to advanced manufacturing is exemplified by its significant push into electric vehicles, making it the world's largest auto exporter. This shift is a consequence of China's structural slowdown and is transforming its relationship with other economies from complementary to competitive. The transition will have second-order impacts on the global economy, leading to higher global competition across various advanced manufactured goods.