China’s economy slowed to its weakest growth in over three years, hitting 4.3% in Q2—below its annual target. Top leaders acknowledged the challenges and pledged to ramp up government spending and introduce new policies to revive demand by year-end. Balancing stimulus with risks like debt and overcapacity, they’re also targeting “involution” competition—price wars that erode profits. Economists suggest leveraging existing infrastructure plans to stabilize growth without ballooning deficits. The key now: how effective will these incremental moves be in turning the tide?
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