AI resilience meets domestic headwinds


CHINA’S economy slowed more than expected to 4.3% year-on-year (y-o-y), or 0.9% quarter-on-quarter on a seasonally adjusted basis, in the second quarter of 2026 (2Q26) from 5% in 1Q26.

Nevertheless, gross domestic product (GDP) growth averaged 4.7% y-o-y in the first half of 2026 (1H26), remaining within the government’s 4.5%–5% growth target.

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