China’s economy is exhibiting minimal signs of recovery, with challenges in the property sector and looming deflation adversely affecting growth prospects. Upcoming official data is anticipated to display slight improvements in industrial output, retail sales, and fixed-assets investment for July compared to last year, remaining significantly lower than pre-pandemic levels. Confidence in real estate investments has also waned, and extreme weather events have further hampered construction and infrastructure projects. Additionally, deflation has become a concern as manufacturers and retailers slash prices to attract customers and offload surplus inventory.