Is China's economy stalling or transforming?

"China bets big on advanced technology in its five-year plan to revive the economy. For decades, China powered spectacular growth through exports, infrastructure and cheap credit. But that old model is running out of steam, even as it hits a record trade surplus with the world this year. The property sector is drowning in debt, confidence is fading, and consumers are holding back."

"But that old model is running out of steam, even as it hits a record trade surplus with the world this year. The property sector is drowning in debt, confidence is fading, and consumers are holding back. Now, Beijing faces its toughest test yet: how to keep the world's second-largest economy growing without relying much on the engines that once drove it. A new five-year plan promises high-quality growth built on technology and self-reliance."

China's economic model of export-led growth, heavy infrastructure investment and cheap credit is losing momentum despite a record trade surplus. The property sector is deeply indebted, consumer confidence is weakening, and households are curbing spending. Beijing must find new drivers of expansion while avoiding heavy reliance on past engines of growth. The five-year plan centers on advanced technology, innovation and greater self-reliance to achieve higher-quality growth. Implementation will require addressing debt, restoring consumer confidence and mobilizing investment into tech sectors. Ongoing trade tensions with the United States risk constraining access to key technologies and raising the cost of the shift.

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