China’s economy struggles to regain domestic momentum despite export boom: Report

 Despite strong export growth, China’s domestic economy faces significant challenges. Consumer spending saw a decline in May, with retail sales falling for the first time since late 2022. Consumer confidence remains low, and credit demand is weak, indicating reluctance from businesses and households to borrow. The property sector continues to struggle, though some major cities show signs of stabilization. Semiconductor exports, however, are a notable bright spot, surging significantly. Despite strong export growth, China’s domestic economy faces significant challenges. Consumer spending saw a decline in May, with retail sales falling for the first time since late 2022. Consumer confidence remains low, and credit demand is weak, indicating reluctance from businesses and households to borrow. The property sector continues to struggle, though some major cities show signs of stabilization. Semiconductor exports, however, are a notable bright spot, surging significantly.