High-tech production offsets weak retail sales and property investment, increasing pressure for reflationary policies amid trade risks.
China’s second-quarter GDP growth decelerated to 4.3%, down from prior periods, as weak domestic demand and a struggling property sector weighed on activity. Exports and high-tech manufacturing remained key drivers, with industrial value added rising 5.4% year-to-date and high-tech output surging 13.3% in the same period.
Retail sales and property investment continued to underperform, contrasting with robust production gains. June industrial output accelerated to 5.3% year-over-year from 4.5% in May, while sectors like 3D printing, lithium-ion batteries, and industrial robots saw growth rates of 48.5%, 39.3%, and 28.0%, respectively.
Authorities acknowledged an unstable external environment and insufficient demand, signaling potential for stronger policy support. The National Bureau of Statistics described economic performance as operating within an appropriate range but emphasized risks from trade friction and export dependency.