Despite facing multiple headwinds, China’s economy demonstrated resilience in the first half of 2024, growing at a robust rate of 5.0%. According to the World Bank, this growth was driven by strong consumer spending on services, robust exports, and increased investment in manufacturing and public infrastructure. However, the momentum has slowed since the second quarter, reflecting uneven growth across sectors.

Domestic demand remains sluggish, contributing to low inflation levels, while weak business confidence persists due to the ongoing property market downturn. These challenges highlight the complexities of China’s economic landscape, where pockets of strength coexist with areas of vulnerability.

On the export front, China continues to dominate global markets. In November 2024, the country’s top export products included:

• Telephones: USD 24.5 billion
• Computers: USD 14.4 billion
• Integrated circuits: USD 13.8 billion
• Commodities not elsewhere specified: USD 8.99 billion
• Cars: USD 6.86 billion

These figures underscore China’s critical role in global supply chains, particularly in technology and automotive sectors. The export of high-value products like integrated circuits and cars highlights China’s shift toward advanced manufacturing and its ability to meet global demand for cutting-edge technologies.

Looking ahead, China’s ability to navigate domestic challenges while maintaining its export competitiveness will be crucial. For businesses, understanding these dynamics is key to identifying opportunities in a market that remains both influential and complex.

As part of the PKF Octagon China Desk, we are committed to providing insights and support to help businesses navigate this evolving landscape. Whether you’re exploring investment opportunities or seeking to understand market trends, our Mandarin speaking team is here to guide you every step of the way.