China’s growth engines are sputtering. Shenzhen and Guangzhou, once the country’s proud symbols of economic dynamism, have posted weaker-than-expected growth in the first half of 2025, the South China Morning Post has reported.
Shenzhen, often called China’s tech capital, grew by just 5.1 per cent, while Guangzhou lagged even further at 3.8 per cent. The national growth rate stood at 5.3 per cent. The slowdown highlights growing trouble in key sectors like exports, real estate, and investment.
Given the Chinese Communist Party’s record of fudging GDP data, the actual performance would be worse still.
In Shenzhen, exports dropped 7 per cent and real estate investment plunged over 15 per cent. Office vacancies are rising, and confidence among investors appears to be slipping. Even though its high-tech industries are growing, they haven’t been able to offset the wider slowdown.
Guangzhou is also struggling. The city’s car industry, especially traditional fuel-powered vehicles, continues to decline. A surge in exports, especially to Africa and Southeast Asia, has helped somewhat, but not enough to drive a strong recovery.
The weak numbers reflect broader problems in China’s economy, from a shaky property market to shrinking global demand. And for countries like India, they signal a rare opening to challenge China’s manufacturing dominance.