China's economy continues to demonstrate resilience despite mounting domestic and international challenges, but weak consumer demand and growing external pressures are threatening the sustainability of its economic recovery, a senior government official warned on Tuesday.
The National Development and Reform Commission (NDRC), China's top economic planning agency, acknowledged that the world's second-largest economy has maintained steady growth. However, officials cautioned that the underlying drivers of economic expansion remain fragile, raising concerns about the country's longer-term growth outlook.
The assessment followed Monday's release of stronger-than-expected third-quarter economic growth figures, which highlighted the crucial role of robust exports in supporting economic activity. While overseas demand has helped sustain growth, Chinese consumers remain cautious about spending, creating an imbalance between domestic production and consumption.
Zuo Gang, deputy director of the NDRC's Department of National Economic Comprehensive Affairs, said China's economy faces increasingly significant external shocks alongside persistent structural challenges at home.
He emphasized that the imbalance between strong industrial supply and insufficient domestic demand remains a major obstacle to achieving sustainable economic growth.
The official also pointed to widening differences in performance across industries, suggesting that China's economic recovery remains uneven. Although some sectors continue to benefit from export demand and industrial activity, others face difficulties stemming from subdued consumer confidence and limited spending.
These challenges have intensified concerns about China's reliance on international markets, particularly as global economic uncertainty and external trade pressures threaten export-driven growth.
To address these weaknesses, Chinese policymakers are preparing additional measures aimed at strengthening domestic consumption and reducing the economy's dependence on external demand.
According to Zuo, the NDRC is developing an implementation plan for China's domestic demand expansion strategy covering the 2026-2030 period. Authorities intend to accelerate the plan's release and implementation to provide stronger support for economic activity.
The proposed strategy is expected to focus on improving the foundations for domestic demand growth, an increasingly important priority as Beijing seeks a more balanced economic model.
Despite encouraging third-quarter growth figures, the NDRC's latest assessment underscores the challenges facing China's economy. Sustaining recovery will depend on stronger domestic demand, improved confidence and the country's ability to withstand mounting external economic pressures.
