China's economy expanded by 4.3% in the second quarter of 2026, marking its slowest growth since 2022.This follows structural issues and geopolitical tensions that have hindered domestic consumption efforts.While exports surged 27% in June, driven by global demand for electric vehicles and tech products, analysts warn of growing imbalances.Heavy state support for high-tech sectors has left lower-value manufacturing and services struggling.China's record $1.2-trillion trade surplus has drawn criticism from other nations, with the EU considering anti-dumping measures.The property market slump, which accounts for 70% of household wealth, has further dampened consumer confidence.Youth unemployment remains high, exacerbated by tech and education sector crackdowns, as 12.7 million graduates enter the job market.Despite government campaigns to boost consumption, online discussions focus on cost-cutting rather than spending.

Experts argue that meaningful economic rebalancing requires stronger fiscal support, including improved social transfers and healthcare systems, to reduce precautionary saving and sustain consumption growth.