China's Economy: Growth or Illusion?

China's economy grew by 5% last year, aligning with government targets, but widespread concerns highlight worsening domestic standards. Structural issues may worsen in 2025 as China counters U.S. tariffs with debt. Analysts emphasize urgent need for economic reforms and domestic consumption prioritization, amid skepticism over official growth data.

China's economy experienced a 5% growth in the past year, meeting government expectations, yet public sentiment reveals a different story with many reporting a decline in living standards. The mismatch points to deeper structural issues that could intensify in 2025, especially with anticipated U.S. tariff hikes.

Economists and analysts are raising alarms about China's strategy to combat these challenges, mainly through increased borrowing. There's a call for Beijing to focus on domestic consumption and implement thorough economic reforms, including easing fiscal policies and addressing the real estate crisis.

Amid skepticism about China's official data, experts argue that true growth could be significantly lower than reported. This raises broader concerns about China's domestic demand and its impact on global trade dynamics. As the nation's youth unemployment climbs, the pressure mounts on Beijing to create a sustainable economic recovery plan.

(With inputs from agencies.)