China's Economic Balancing Act: Growth Amid Unease

China's economy matched the government's 5% growth target, yet disparities persist as domestic challenges worsen. Structural issues risk deepening by 2025, as Beijing grapples with expected U.S. tariff hikes, deflation, and a property crisis. Analysts stress the need for comprehensive fiscal reforms and stimulus shifts towards consumption to sustain growth.

In 2024, China achieved a 5% economic growth, mirroring government targets. However, this growth was uneven, raising alarms about worsening living standards and stressing domestic challenges in the face of a potential U.S. tariff increase.

Experts express concerns over China's reliance on debt to mitigate these external pressures, highlighting the risk of structural issues intensifying by 2025. Despite strong industrial output and export figures, rising unemployment and subdued retail sales underscore the fragile domestic front.

To foster sustainable growth, analysts argue for fiscal policy shifts to stimulate domestic demand. They suggest that investment in consumption, rather than infrastructure and industrial upgrades, is crucial to addressing the country's internal economic imbalances and mitigating global trade tensions.

(With inputs from agencies.)