Inside China’s two-speed economy: Why goods consumption is slumping even as exports and services boom

China's economy grew 4.3% in Q2, the slowest since the pandemic, with weak retail sales (1.0% in June) contrasting sharply with strong export growth (27% in dollar terms). The economy is split between a resilient export sector and a struggling domestic market marked by sluggish consumption, a property sector crisis, and 'involution.' The government aims to boost consumption via a five-year plan targeting 60 trillion yuan in retail sales by 2030.