China’s economy is growing at around 5%, significantly slower than previous rates above 10%. This slowdown is reshaping its global trade relationships, particularly with Pakistan.
As of early Tuesday, China’s fixed investment has turned negative. Household spending remains low, impacting overall economic growth. The aging population is leading to fewer workers and falling employment rates.
Pakistan’s President Zardari recently visited China to attract Chinese investment. This visit aimed to expand trade between the two nations amidst shifting geopolitical dynamics.
Key economic indicators:
- China’s economy projected to grow at 5% in 2025 and early 2026.
- Previous growth rates were over 10% before this decline.
- China invested approximately $25.9 billion in transport and energy projects under the China-Pakistan Economic Corridor (CPEC).
China’s semiconductor industry is focusing on self-reliance due to US export curbs on advanced chips. Currently, China holds a 30% share of the global market for legacy chips. However, experts note that achieving chip self-sufficiency remains a challenge.
Ambassador Mansoor Ahmad Khan highlighted that China relies heavily on oil imports from Iran, which further complicates its trade dynamics. He stated that a significant portion of these imports either originates from Iran or transits through the Strait of Hormuz.
The long-term impact of China’s economic slowdown on global trade is unclear. Whether Pakistan’s evolving economic ties with China will lead to a full-scale revival of CPEC remains uncertain.
