Chinese President Xi Jinping has been visiting Shanghai, a city at the forefront of the country’s tech ambitions and AI development. The trip comes just ahead of his speech at the World Artificial Intelligence Conference, set to take place on Friday.
A Slowing Economy
The PRC economy slowed more than expected in Q2, with real GDP growth declining from 5.0% year-on-year in Q1 to 4.3%. This dip puts the country below the 4.5% consensus and the lower bound of the government’s 4.5–5.0% full-year target. The first-half growth rate was a slightly more reassuring 4.7%, with sequential Q2 growth slowing to 0.9%.
Trade Deal Troubles
Meanwhile, there are indications that the US-China trade deal is facing challenges. While officials in both countries have maintained optimism about the agreement’s prospects, some concerns are emerging about its implementation, particularly in light of the recent economic slowdown.
Reporting from the Frontlines
A recent gathering of the Foreign Correspondents Club highlighted the difficulties faced by journalists covering China’s rapidly changing economic landscape. Panelists discussed issues ranging from censorship and press freedom to the difficulties of accurately assessing economic performance in a country with often opaque data releases.
What this means: The Chinese economy’s slowdown and trade tensions come at a time when President Xi Jinping is championing the country’s AI ambitions. With growth dipping below expectations and challenges to the US-China trade deal, the stakes are high for the upcoming speech at the World Artificial Intelligence Conference. As China’s economic performance continues to influence global markets, the importance of accurate and nuanced reporting on its economic landscape will only continue to grow.
