China’s shift toward high-tech industries isn’t enough to offset a property slump, Rhodium Group reports. From 2023 to 2025, new sectors only added 0.8 percentage points to economic growth, while traditional ones declined by 6 points. Beijing aims to boost tech self-reliance but may struggle to hit GDP growth targets.

Real estate downturn deepens as new industries fail to make up for the loss. Beijing focuses on high-tech development but neglects the struggling property sector. Sales fell to 2009 levels last year. Policymakers consider support as top leaders set economic targets in March. KKR predicts slow GDP growth due to property weakness.

Overemphasis on tech could lead to job losses and economic vulnerability. New industrial sectors pay well but employ fewer people, risking up to 100 million job losses. China’s urban unemployment remains high, leaving the country reliant on export markets. Trade tensions and job market weakness cast doubt on achieving growth targets.

China’s economic imbalance mirrors the U.S., with AI companies thriving while others struggle. Beijing aims for long-term innovation, integrating new tech into traditional industries. Zhang Jianping of China’s Commerce Ministry emphasizes the importance of supporting innovation for future competitiveness.

Read more at CNBC: China’s tech bet fall short of filling property hole, report says