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China's Economy Faces 6% Contraction Amid Weak Consumption

12/18/2025

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Story summary
  • China's economy is projected to contract by 6% this year as domestic consumption remains weak.
  • The Central Economic Work Conference urged a balanced approach combining investment in physical assets with social welfare.
  • Officials pledge to prioritize domestic demand in 2026.
  • Exports remain strong and support a trade surplus above $1 trillion.
  • Proactive fiscal policies and market reforms aim to stabilize the property sector and lift household spending.