China's economy expanded by 4.3% in the second quarter, falling short of the government's target range of 4.5-5%, according to data from the National Bureau of Statistics.
The figure marks one of the lowest quarterly growth rates since the early 1990s.
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The data released Wednesday contrasts sharply with customs figures showing a 27% increase in exports for June, highlighting the country's growing reliance on international sales amid struggling domestic consumer demand.
Monthly car exports exceeded 1 million units for the first time in June, yet domestic vehicle sales declined by over 16%.
Retail sales, excluding automobiles, rose by 3%, but economists stress that more robust consumption growth is needed.
Investment Decline and Expert Concerns
Li Daokui, a prominent economist and adviser to the Chinese government, noted that local governments have transformed from growth engines to bottlenecks.
Fixed-asset investment fell by more than 4% from January to May, with Li describing the cumulative negative growth as "unprecedented" in intensity and magnitude.
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Li, a professor at Tsinghua University, emphasized the need to address investment and unemployment issues to achieve economic objectives.
Concerns also surround the US-China trade relationship, currently in a truce, with a potential return to tariffs in November that could affect Chinese exporters.
The ongoing US-Israel conflict poses additional risks to global demand for Chinese goods.
Despite these challenges, the overall growth rate for the first half of the year stands at 4.7%, aligning with Beijing's target range.
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This may reduce the urgency for large-scale policy interventions, though calls persist for more extensive measures to boost consumer spending.
