In an unusually blunt assessment of China's economic prospects, a leading Chinese economist has refuted the popular market theory that the current slump is the result of a "K-shaped" economy — with some sectors like EVs and AI thriving and others declining — arguing that the core problem is an overall cooling that has persisted for three years.

Congressional advisers cite AI optimism but question Beijing's openness after being denied access to Hangzhou tech firms A US congressional advisory body on China said the country is projecting an image of confidence even as concerns about its economy and future growth remain beneath the surface,

August 11, 2026: Between April and June, the Chinese economy expanded more slowly than it had since 2022. The cause of this was declining household consumption, which blurred manufacturing efforts and exports. All this increased anxiety over the prospects of long-term sustainability and the creation of unbalanced growth.

The ruling Politburo called for “more proactive” tax and spending policies but did not endorse broad action to address weak consumer spending.

The official data was far below the economy’s strong 5% pace of growth in January-March, despite a surge in exports driven partly by the boom in artificial intelligence.

On the surface, China is on track for another year with a trade surplus topping $1 trillion. Exports surged last month by 24 percent year-over-year, according to data published Friday. But the domestic economy is showing prolonged weakness.

Chinese exporters are moving into halal food, cosmetics and fashion, but success in this vast market depends on something harder to manufacture than cheap goods: trust.

A key pillar of China Opportunity 2.0 is the resilience and steady growth prospects of the world's second-largest economy, which are providing greater certainty for global businesses and reinforcing confidence in long-term investment and development amid a more volatile external environment.