China Plans Economic Overhaul Amid Slowing Growth And Global Tensions

China plans economic overhaul amid slowing growth and global tensions

Beijing China has signalled plans to reshape its economy as it confronts mounting challenges including weak domestic consumption, a prolonged property crisis and growing trade tensions with Western countries.

The announcement came as Chinese leaders set a lower economic growth target for the year, reflecting concerns about slowing momentum in the world’s second-largest economy. Officials say the shift is part of a broader strategy to move the country toward more sustainable and high-quality growth.

Premier Li Qiang outlined the government’s priorities during the opening of China’s annual parliamentary gathering, stressing the need to strengthen domestic demand and invest in advanced technologies such as artificial intelligence and semiconductors. The government also plans to expand research and development spending and support innovation in high-tech industries. China’s leadership has been increasingly concerned about weak consumer spending, which has left the economy heavily reliant on exports and industrial production. Economists say this imbalance has become more visible in recent years as households remain cautious about spending.

At the same time, the country is still grappling with a deep crisis in its property sector, once a key driver of economic growth. The real-estate slowdown has reduced local government revenue and undermined household wealth, weighing on overall economic activity. Trade relations with Western economies also remain tense, particularly with the United States, as disputes over tariffs and technology restrictions continue. These pressures have pushed Beijing to focus more on technological self-reliance and strengthening domestic markets.

Despite the challenges, Chinese officials say the country’s long-term goal is to transform its economy through innovation, stronger consumer demand and more resilient supply chains.