China's economy starts 2026 on a high note
China's economy is off to a surprisingly strong start this year.
Industrial production jumped 6.3% in January and February, the fastest pace since last September, while retail sales grew by 2.8%, both beating forecasts.
Even fixed-asset investment, which contracted for the first time on record in 2025, managed a small but notable rebound of 1.8%, according to official data.
New challenges are emerging
Despite the positive momentum, new challenges are on the horizon due to rising tensions in the Middle East after conflict broke out in Iran at the end of February, disrupting global trade.
China isn't as exposed to oil price shocks but is sensitive to changes in global demand, so leaders are playing it safe with modest stimulus and close monitoring.
The government has set a slightly lower growth target for 2026, around 4.5% to 5%, but early signs suggest China's economy could still hit that goal this year.