China's latest official statistics show that gross domestic product (GDP) in the first three quarters of 2026 rose 4.6% annually, returning to the lower end of the official annual growth target of 4.5%-5%. Although Beijing authorities remain optimistic about economic prospects, since the housing bubble burst in 2021, and problems such as weak domestic demand and sluggish consumption have continued to plague the Chinese economy, more and more analysts have compared China's experience to Japan's long-term economic stagnation. Many economic authorities believe that China is repeating the same mistakes as Japan's lost decades. Economists say the only solution is to borrow money to "save consumption", increase the proportion of domestic demand in GDP and eradicate the "focus on production and weak consumption" in China's economy. Otherwise, the "lost Chinese-style economy" may last longer and be more miserable than Japan's.

China's latest official statistics show that gross domestic product (GDP) in the first three quarters of 2026 rose 4.6% annually, returning to the lower end of the official annual growth target of 4.5%-5%. Although Beijing authorities remain optimistic about economic prospects, since the housing bubble burst in 2021, and problems such as weak domestic demand and sluggish consumption have continued to plague the Chinese economy, more and more analysts have compared China's experience to Japan's long-term economic stagnation. Many economic authorities believe that China is repeating the same mistakes as Japan's lost decades. Economists say the only solution is to borrow money to "save consumption", increase the proportion of domestic demand in GDP and eradicate the "focus on production and weak consumption" in China's economy. Otherwise, the "lost Chinese-style economy" may last longer and be more miserable than Japan's.

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