What Looks Upbeat in Chinas Economy Comes With Reservations

Beijing got some good economic news for a change, but neither piece of information suggests a fundamental improvement in China’s economic situation.BYD electric cars and other car brands for export are stacked at the Taicang port in Suzhou, eastern Jiangsu Province, China, on April 7, 2025. STR/AFP via Getty Images2/4/2026|Updated: 2/4/2026CommentaryRecent economic news from China carries two points of light. First, Beijing has reached an agreement with the European Union (EU) that could relieve some of the tariff pressure on Chinese-made electric vehicles (EVs). Second, the youth unemployment rate has slightly edged down.Milton Ezrati is a contributing editor at The National Interest, an affiliate of the Center for the Study of Human Capital at the University at Buffalo (SUNY), and chief economist for Vested, a New York-based communications firm. Before joining Vested, he served as chief market strategist and economist for Lord, Abbett & Co. He also writes frequently for City Journal and blogs regularly for Forbes. His latest book is “Thirty Tomorrows: The Next Three Decades of Globalization, Demographics, and How We Will Live.”Author’s Selected Articles