Commenting on the rise in China’s Consumer Price Index (CPI), SMU Associate Professor of Finance Fu Fangjian said that the data show China is still in a state of strong supply and weak demand. He added that the latest data again reflects the strong growth of new economic drivers in China, represented by artificial intelligence (AI) and high-end manufacturing, but the real estate and traditional manufacturing sectors remain sluggish, with weak demand. Assoc Prof Fu noted that the transition interface between new and traditional drivers has not been fully established, adding that new manufacturing is booming, while traditional manufacturing is relatively sluggish, resulting in a significant difference in perceived economic conditions.
