China’s Economy Stays Strong: Expert Breaks Down Key Trends

Property Market Reset, Manufacturing Power, and Global Shifts

China’s economy remains resilient despite recent headlines about fluctuations in its property sector and stock markets, says Liu Yangsheng, senior fellow at the Taihe Institute. In a candid interview, Liu highlights how the economy is adapting to new global realities while maintaining its role as a manufacturing and trade giant.

Property Market: From Boom to Balance

Liu acknowledges the property sector is undergoing a ‘correction’ after years of rapid expansion. ‘Local governments can’t rely on land sales like before,’ he notes, emphasizing a shift toward sustainable urban housing rather than speculative investments. While demand may slow, the sector will still drive stable urbanization, prioritizing homes ‘for living, not leverage.’

Manufacturing Muscle & Global Trade

China’s economy isn’t just about real estate. Liu underscores its unmatched manufacturing efficiency, producing more than the U.S., Japan, and Germany combined. With advanced robotics and a diversified supply chain, ‘China’s factories aren’t slowing down—they’re getting smarter,’ he says. Plus, as the top trade partner for 120+ countries, China remains central to global commerce—especially with ASEAN nations now leading its trade network.

GDP Goals & Foreign Investment Shifts

Despite global headwinds like inflation and U.S. tariffs, Liu is optimistic about China hitting its ~5% GDP target. ‘European and Middle Eastern investors are stepping up,’ he explains, pointing to record German FDI and surging Gulf-state investments. While some capital flows adjust, China’s regional partnerships and tech-driven productivity could keep growth steady.

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China's economy will keep being efficiently productive

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