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China Starts 2026 With Stronger Output and Spending as Property Slump Persists

Officials target 4.5–5.0% growth for 2026, underscoring a pivot to tech investment despite fragile demand.

Overview

  • National Bureau of Statistics data show January–February industrial output up 6.3% year on year, retail sales up 2.8% and fixed‑asset investment up 1.8%, all beating forecasts.
  • Real estate remained a drag as property investment fell 11.1% year on year, with sales down 13.5%, new housing starts down 23.1% and developer funding down 16.5%.
  • Infrastructure spending jumped 11.4% year on year, while private‑sector investment fell 2.6%, highlighting uneven momentum across the economy.
  • Officials called the start to 2026 “sound” yet warned of “strong supply, weak demand,” noting cautious consumers as tourism spending per trip dipped 0.2% and passenger vehicle sales fell 26% in the first two months.
  • Beijing set a lower growth goal and emphasized AI‑driven industry as exports and AI‑related orders buoy factories, even as the Iran war and higher energy prices pose new risks to the outlook.