China’s tech bet fall short of filling property hole, report says
China’s tech bet fall short of filling property hole, report says
Publish Date: 2026-01-12 00:33:00
Source Domain: www.cnbc.com
- China’s investment in high-tech industries like artificial intelligence, robotics, and electric cars contributed only 0.8 percentage points to economic output from 2023 to 2025, according to a Rhodium Group report.
- Despite this, real estate and other traditional sectors saw a combined 6 percentage point decline in the same period.
- Beijing’s push towards advanced technologies has not been sufficient to counter the economic slowdown caused by stagnant real estate.
- To achieve targeted annual GDP growth around 5%, new industries would need to expand sevenfold over the next five years, according to Rhodium.
- The property sector’s weakness is now expected to cut 1.2 percentage points off GDP growth in 2026, according to a report by KKR.
- The shift towards high-tech industries may lead to job losses in traditional sectors, potentially displacing up to 100 million workers over the next decade, increasing dependence on export markets.
- China’s reliance on exports makes the economy vulnerable to new trade restrictions, following recent tariff increases by the U.S., EU, and Mexico.
- The economic imbalance in China raises concerns over long-term impacts, both domestically and on global trade.
