Even if we assume that the 5.2% growth of GDP in the second quarter is true, it is based on exports. China’s economy depends heavily on foreign markets as domestic consumption and investments are low, and the country won’t be able to afford a larger government spending given their 3x GDP debt.

In a Reuters analysis, the agency titles that beneath China’s resilient economy, [there is] a life of pay cuts and side hustles

While China has supported economic growth by keeping its ports and factories humming, the lack of real demand has hit profits, in turn squeezing workers […] through wage cuts and forcing them to moonlight […] Contract and bill payment delays are rising, including among export champions like the autos and electronics industries and at utilities, whose owners, indebted local governments, have to run a tight shop while shoring up tariff-hit factories […]

Economists have long urged Beijing to redirect support to domestically focused sectors, such as education and healthcare, or boost household consumption - for instance, by bolstering welfare […]

There is no data on payment delays in the government sector. But among industrial firms, arrears have grown quickly in sectors with a strong state presence, either through industrial policy or - like in utilities - through direct ownership.

Arrears in the computer, communication and electronic equipment sector and in autos manufacturing - two priorities for China’s economic planners - rose by 16.6% and 11.2%, respectively, in the year through May, faster than the 9% average across industries. Overdue payments were up 17.1% and 11.1% in the water and gas sectors […]