World Bank says exports support China growth as domestic demand remains weak

China’s economy remained resilient in the first half of 2026, supported by exports, high-technology investment and policy measures, according to the World Bank’s latest China Economic Update.

The report said strong manufacturing exports and investment in advanced industries helped offset weaker domestic demand during the second quarter.

China remains central to global supply chains across electronics, machinery, industrial equipment and consumer goods. Changes in Chinese demand and production therefore affect working capital, inventory and trade finance requirements across a wide range of international businesses.

The World Bank said the economy continues to face structural challenges, including weaker household consumption and uneven private-sector confidence.

Those pressures can influence payment terms and financing needs across supplier networks. Businesses facing slower domestic demand may place greater emphasis on exports, while suppliers may require additional liquidity to support production and longer cross-border payment cycles.

Continued investment in high-technology manufacturing is also reshaping the composition of Chinese trade. Sectors such as advanced electronics, artificial intelligence infrastructure, electric vehicles and industrial automation are becoming more important within investment and export activity.

For banks, that shift is likely to affect demand for export finance, receivables finance, inventory funding and risk management across Asian and global trade corridors.

The World Bank said stronger consumption and more balanced domestic growth will be important to sustaining economic momentum over the longer term.

The report presents a resilient but uneven picture. China’s export capacity and high-technology investment remain strong, while weaker domestic demand continues to create uncertainty for businesses and lenders exposed to the market.