China’s Economy Looks More Resilient Than It Feels as a Property Slump Drags On

China’s economy appears more resilient on paper than it feels on the ground, as steady growth indicators and government support measures contrast sharply with the prolonged drag from a deepening property slump that continues to sap confidence. Official data point to stabilization in manufacturing, exports, and infrastructure investment, suggesting that policymakers have succeeded in preventing a sharp slowdown through targeted stimulus and regulatory adjustments. However, the ongoing downturn in the real estate sector, long a pillar of household wealth and local government revenue, has created a persistent sense of unease among consumers and businesses alike. Property sales remain weak, developers continue to struggle with debt, and unfinished housing projects have undermined trust in the market, making families more cautious about spending and investment. The psychological impact of falling home prices has proven difficult to offset, even as other parts of the economy show signs of improvement. Economists note that while China has avoided a crisis-style collapse, the slow erosion of confidence poses a longer-term challenge that is harder to address with traditional stimulus tools.