For decades, China’s breakneck economic expansion has been a defining force shaping global markets. However, recent data suggest this momentum is decelerating due to deep-rooted structural issues. Demographic shifts – including a shrinking workforce and an aging population – are constraining labor supply and driving up costs. Meanwhile, the country’s heavy reliance on investment-led growth and exports is showing diminishing returns amid rising global protectionism and trade tensions. These factors combined signal a critical juncture, with growth rates slipping below the threshold previously seen as emblematic of China’s economic dynamism.

Key challenges impacting the economy include:

  • Increasing debt levels in local governments and state-owned enterprises undermining financial stability
  • Technological catch-up slowing as innovation faces…