Why is China’s economic growth a challenge?

लगानी न्यूज

२ कार्तिक २०८३, सोमबार २१:०७October 19, 2026

Kathmandu. China’s economic growth is expected to be below the government’s target this year due to a decrease in domestic demand and the impact of the global energy crisis. Despite the increase in exports, the crisis in the real estate sector and weak consumer spending have increased pressure on the economy.

According to a survey of economists by AFP, China’s economy is expected to expand by 4.4 percent from July to September. In the second quarter, the growth rate was 4.3 percent. China is aiming to grow by 4.5 to 5 percent this year.

Guo Shan, an economist at Hutong Research, said exports are the only strength of the economy. According to him, government measures to increase subsidies and infrastructure investment may not be enough. The International Monetary Fund has also lowered China’s annual economic growth forecast to 4.5 percent due to rising energy costs.TAG_OPEN_div_12

Global demand for computers, semiconductors and artificial intelligence (AI) equipment has boosted China’s exports. But rising trade savings have increased tensions with the United States and the European Union (EU). China’s subsidies to domestic industry have also been criticized for giving unfair competitive advantage in foreign markets.TAG_OPEN_div_10

According to economists, China needs to move from an economy dependent on construction, real estate and exports to sustainable development based on domestic consumption. But with domestic demand weak, Chinese producers are looking for new markets and turning to foreign countries.