China’s economy continues to face a steep decline, despite various interventions by Beijing, including interest rate cuts, increased government spending, and subsidies for electric vehicles. Economic growth slowed to 4.7% in the second quarter of 2024, a notable drop from the nation’s previous double-digit growth. With factory output, retail sales, and investments underperforming, unemployment surged to a six-month high of 5.3% in August.

President Xi Jinping, during China’s 75th National Day celebration, warned of turbulent times ahead, as domestic and international challenges hamper recovery efforts. Western nations, including the U.S., Canada, and the European Union, have imposed heavy tariffs on Chinese-made electric vehicles (EVs) to prevent market dumping, further aggravating Beijing's economic troubles.

The real estate sector, once a pillar of China's economy, is also in turmoil, with major developers like Evergrande and Country Garden facing bankruptcy or liquidation. This housing market collapse has triggered broader economic consequences, affecting related industries such as construction materials and home appliances.

The International Monetary Fund projects China’s growth will fall to 4.5% in 2025, potentially shrinking to 3.3% by 2029. With an aging population and reduced consumer confidence, China faces mounting pressure to avert further economic stagnation.