While the US-China trade war continues to dominate headlines, a closer look reveals a deeper, more persistent set of economic challenges facing China. These issues, brewing long before the trade tensions escalated, demand immediate attention and threaten to overshadow even a resolution of the trade dispute.

The lingering effects of the COVID-19 pandemic have exposed vulnerabilities in the Chinese economy, with the ongoing property crisis serving as a stark example. This crisis, and others, require significant policy action from Beijing, regardless of the outcome of trade negotiations with Washington.

A key factor impacting China’s economic trajectory is its consumer sector. For sustained growth, a more robust consumer base is vital. This becomes even more critical as Beijing seeks to lessen its dependence on exports, historically the engine of Chinese economic growth. Stimulating domestic consumption is thus crucial to navigating the current economic climate and ensuring future prosperity.