Workers assemble new-energy vehicles in Jinhua, Zhejiang province, on Jan. 13, 2026. Photo: Visual China
China’s economy has headed into 2026 sending mixed messages. On one side, the sudden rise and success of Deep Seek, Manus and other domestic AI leaders have boosted confidence in China’s ability to both drive innovation and commercialize leading-edge technologies. On the other, national real estate prices are still declining, further extending a prolonged drag on confidence and consumption levels.
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