China Economics Weekly Local governments plan to keep tightening their belts China’s provincial governments have now concluded the annual meetings at which they set economic targets and lay out fiscal plans. They anticipate slower GDP growth this year and plan to continue with... 6th February 2026 · 6 mins read
China Economics Weekly End of “three red lines“ won’t revive the property market This week, China’s government ended the “three red lines” regulatory requirements for property developers that sparked China’s property crisis. But this easing is mostly symbolic – it won’t change... 30th January 2026 · 5 mins read
China Economics Weekly Service sector under pressure, demographics worsening If the official GDP data are to be believed, quarter-on-quarter growth picked up in Q4, driven by stronger services activity. But this is at odds with other indicators, which point to weaker momentum... 23rd January 2026 · 5 mins read
China Economics Weekly Breaking down China’s record trade surplus China’s trade surplus hit 1% of global GDP last year, a new record. This was made possible by reorientating trade toward non-U.S. markets, especially ASEAN but also Europe and Africa. It also involved... 16th January 2026 · 7 mins read
China Economics Weekly Beijing to continue insulating domestic chipmakers Beijing's guidance to Chinese firms to stop placing orders for H200 chips is unlikely to reflect an outright ban. Instead, China's leadership looks to be pausing orders as it tries to regulate imports... 9th January 2026 · 6 mins read
China Economics Weekly Renminbi set to appreciate further in 2026 The renminbi has made headway recently, both against the US dollar and in trade-weighted terms. With inflation set to remain much lower in China than elsewhere, further nominal appreciation looks... 2nd January 2026 · 6 mins read
China Economics Weekly Fiscal pullback weighing on growth Fiscal spending has slowed sharply since October despite ample fiscal space in the current budget, suggesting that local governments have been failing to make full use of the available funds earmarked... 19th December 2025 · 7 mins read
China Economics Weekly AI infrastructure buildout to ramp up next year While China has remained hot on the heels of the US this year when it comes to AI model development, insufficient chip supply means it has lagged in the construction of the data centres that will be... 12th December 2025 · 6 mins read
China Economics Weekly Leadership signals fiscal priorities for 2026 Improving the allocation of fiscal spending, rather than significantly increasing the scale, looks set to be the government's priority going into next year. That's something that's clearly needed –... 5th December 2025 · 7 mins read
China Economics Weekly Waning support for developers may drag on construction Vanke's plan to delay repayment of an onshore bond points to fading state support for non-SOE developers. The risk this poses to financial stability is probably manageable. But it threatens to... 28th November 2025 · 6 mins read
China Economics Weekly Property stimulus plans, Japanification of the bond market Policymakers are mulling a new property stimulus package, including mortgage subsidies for new homebuyers. But this is unlikely to revive demand, as most households remain reluctant to buy in a... 21st November 2025 · 4 mins read
China Economics Weekly Concerns about bank margins don’t preclude easing As the tailwind from fiscal loosening diminishes, the case for more monetary support will increase. And while the PBOC’s latest policy report flags narrowing bank margins as a concern, this may... 14th November 2025 · 5 mins read
China Economics Weekly Lower growth targets, more barriers to foreign chips China’s leadership appears to be quietly de-emphasizing a target to double the size of the country’s economy between 2020 and 2035, focusing instead on a slightly less ambitious per capita goal that... 7th November 2025 · 8 mins read
China Economics Weekly Tariff cut isn’t the biggest trade truce win for China The halving of fentanyl tariffs won’t have much of an impact on China's economy. More consequential for China is the suspension of the Entity List Affiliates Rule, which buys thousands of firms time... 31st October 2025 · 6 mins read
China Economics Weekly Five-Year Plan teasers suggest rebalancing will be slow Officials have pledged to significantly increase the consumption share of GDP. But the wider messaging on China’s upcoming Five-Year Plan suggests that efforts to further expand the supply-side of the... 24th October 2025 · 7 mins read
China Economics Weekly Trade war flashpoints, PBOC holds renminbi steady The recent escalation in US-China trade tensions seems to have resulted in an impasse, with both sides looking to the other to initiate deescalation. For now, the Xi-Trump meeting at the APEC summit... 17th October 2025 · 7 mins read
