The mystery of China’s slumping investment

The Mystery of China’s Slumping Investment

Chinese leaders show little concern despite critics complaining about excessive investment and overly optimistic official statistics. Recently, investment in infrastructure, manufacturing, and construction has weakened significantly—so much so that some analysts doubt the accuracy of the data.

Economic Context

This downturn in investment comes amid broader economic challenges, but the country’s authorities appear calm and steady in their approach.

Sector Insights

Infrastructure investment has slowed sharply.
Manufacturing growth has faltered.
Construction activity remains subdued.

Public Perception and Criticism

“Critics of China’s economy moan that its investment is excessive and its official statistics flatter its performance.”

Despite these concerns, some believe the situation is less dire than the numbers suggest.

Additional Economic Observations

The current economic slowdown affects white-collar workers more than the tech sector.
China’s rising popularity in America raises geopolitical worries.
The country’s economic difficulties are real, but its key assets remain surprisingly resilient.
The president holds extensive powers regardless of the political structure.
Even expert traders find it challenging to forecast abrupt changes in market volatility.

This article appeared in the Finance & economics section of the print edition under the headline “Flip the script.”

Author’s summary: Despite apparent economic troubles and weak investment data, China's leadership remains composed, balancing real challenges with enduring economic strengths.

The Economist — 2025-11-04