China's economy is rising, but many citizens are left behind, analysts say

"Facing rows of journalists, the director of China's National Bureau of Statistics, Kang Yi, took to the podium for a moment that defines China's relationship with the rest of the world once a year. (SOUNDBITE OF ARCHIVED RECORDING) KANG YI: (Non-English language spoken). VALENTINE: He went on to drop the key figure economists and business leaders had been waiting for. China's GDP grew by 5% last year, exactly in line with what China's leading economic planners wanted to see."

"DAN WANG: China has not just survived the trade war with the U.S. It, in fact, thrived. President Trump wanted to be tough with China but got punched in the face. VALENTINE: China more than made up the loss in exports to the U.S. with growth to the rest of the world. WANG: But when it comes to domestic demand, I think President Xi will be quite disappointed."

"VALENTINE: Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics, says that means trouble for homeowners. From the early 2000s till 2021, China's housing sector was booming. NICHOLAS LARDY: As many as 50% of the urban population was buying multiple houses, buying at least a second house, and some were buying three houses. NICHOLAS LARDY: He says that's great when prices keep rising, but not when property values started falling in th"

China's GDP grew 5% last year, matching targets set by economic planners. Exports to markets outside the U.S. offset lost sales to the U.S., helping overall growth. Domestic demand remained weak and disappointed leadership expectations. Property investment fell 17.2%, signaling a sharp contraction in the housing sector. The housing market had boomed from the early 2000s through 2021, with as many as half of urban residents buying multiple properties. Falling property values now threaten homeowners who bought multiple houses and undermine investment-driven growth. Persistent housing troubles and subdued domestic spending pose significant challenges for ordinary citizens.

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