For decades, the story of China’s economic dynamism has been characterised by growth and progress. Today, however, the world’s second-largest economy is grappling with new opportunities and enduring challenges.
Its key macroeconomic paint a complex picture: domestic consumption remains weak, inbound foreign direct investment fell to a three-decade low at the end of 2023 and the property market – though showing early signs of a recovery following stimulus measures – remains turbulent. Industrial growth has been modest and, earlier this year, youth unemployment hit record highs after the government reintroduced data. Labour productivity is also in steady decline. The Chinese economy is predicted to experience a medium-term slowdown due to these structural constraints.
The US election outcome could pile further pressure on an already vulnerable economy as China braces for potential trade tariffs.
These indicators paint a sobering portrait of China’s evolving landscape. However, while the headline numbers offer a snapshot of broader trends, do they tell the full story?
In China, and globally, these forces are not only accelerating transformation but also amplifying worker anxieties about skill relevance, job security and human capital development.