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China Aims for 5% Growth Amid Service Sector Decline

12/7/2025

29 3 Full Breakdown

Center

China's Growth Strategy

China prepares for a new five-year plan and targets about 5% growth in 2026, while maintaining fiscal and monetary support to counter deflation and weak consumer demand.
Services activity slowed, with the services PMI at 52.1 in November.
External demand improves while employment in the services sector declines.
Reckitt reports strong growth in China driven by e-commerce and innovative marketing, signaling shifts in the Chinese consumer landscape.

Right

Cambodia's Economic Challenges

The Kingdom of Cambodia's economy is projected to grow 4% in 2026, down from estimates due to U.S. tariffs and border tensions with Thailand.
The government has raised its 2026 budget to $10 billion to bolster resilience.
Experts say trade agreements are needed to counter these challenges.
The border closure with Thailand has reduced trade by 90%.
A visa-free pilot for Chinese tourists could revive tourism, according to analysts.

Left

JSCCIB Warns China

Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) warns that China's economic growth in 2026 may be limited to 1.6%–2.0%.
JSCCIB attributes the subdued outlook to export overproduction, catastrophic flooding, and U.S. tariffs, outlining the key drivers of the forecast.
The warning highlights significant challenges ahead for China's economy.

1 of 3

China's Growth Strategy

China prepares for a new five-year plan and targets about 5% growth in 2026, while maintaining fiscal and monetary support to counter deflation and weak consumer demand.
Services activity slowed, with the services PMI at 52.1 in November.
External demand improves while employment in the services sector declines.
Reckitt reports strong growth in China driven by e-commerce and innovative marketing, signaling shifts in the Chinese consumer landscape.

1 / 3