A record 26% of listed Chinese firms are expected to report a net loss for 2025, as a prolonged real estate downturn dragged down consumption, a recent survey showed.
Beijing has for years vowed to tackle flagging consumer spending, but its efforts have had little effect so far: Private consumption as a share of GDP in China remains below 40%, compared to 50-70% for G7 nations.
Meanwhile, excessive competition — for example, China has more than 100 EV manufacturers — has stoked fears of deflation, with experts at Eurasia forecasting the spiral will deepen in 2026, and fears are rising of consequences beyond the country’s borders. “We should all hold our breath,” The Wire China said.
