China's economic growth slowed to its weakest pace in three years during the second quarter, according to recent economic data. Despite this overall slowdown, the country's export sector remained robust, with particularly strong performance in electric vehicles and artificial intelligence products.
The deceleration was primarily driven by weak domestic demand, with consumer spending and investment remaining subdued. The property market uncertainty has contributed to this hesitancy among consumers and investors, creating headwinds for the broader economy even as external demand provided some counterbalance.
China now faces the challenge of rebalancing its economy between its strong export performance and the struggling domestic sectors. The divergence between thriving exports and faltering internal consumption underscores the economy's current vulnerability and the pressure on policymakers to address declining domestic demand and property market instability.
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