The mystery of China’s slumping investment

中国投资下滑之谜

Economist

2025-11-04

7 分钟
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  • Critics of China's economy moan that its investment is excessive and its official statistics flatter its performance.

  • Is that still correct?

  • In recent months investment in infrastructure,

  • manufacturing and construction has been alarmingly weak—so weak, in fact,

  • that some analysts think the numbers are too bad to be true.

  • Each month China reports data on investment in "fixed" assets (ie, things other than inventories).

  • It reports how much has been spent since the beginning of the year

  • and how that compares with the same period in the previous year.

  • In the first nine months of 2025, China spent 37.2trn yuan ($5.2trn).

  • Although that sounds like a lot, it was 0.5% less than a year earlier.

  • It was also the first time outside of the covid-19 pandemic

  • that China had reported a negative figure going back more than 30 years.

  • The fall was not evenly spread over the year.

  • Nothing was amiss until the summer.

  • Then spending fell off a cliff.

  • Official figures imply investment shrank by 6.6% in the third quarter compared with a year earlier.

  • On the face of it, this is the kind of collapse that China bears have long predicted and the world economy has long feared

  • China at last reaching the destination on its "treadmill to hell", as one critic put it.

  • Although investment in property has been declining for years,

  • up until the summer it was offset by growing investment in other parts of the economy,