While headline growth disappointed, the detailed breakdown of China’s Q2 GDP data points to a sharp upswing in activity linked to the AI boom. On a q/q basis, over half of last quarter’s expansion came from electronics manufacturing and IT & telecommunications services. The emergence of AI as the new engine of Chinese growth could prove to be a key source of economic resilience over the rest of the year and into 2027, though it does leave the country exposed should the global AI capex boom turn to bust.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
