China has released a slew of economic data this morning, showing its economy grew last year by a solid 5% percent, meeting the government’s target.
Other annual figures released show that total retail sales of consumer goods were up by 3.5% last year, compared to 2023.
But despite these positive indicators China’s economy is still facing challenges from the real estate crisis fallout, people are concerned about their job prospects and there is a reluctance to spend money domestically.
The misty megacity of Chongqing in southern China (population 32 million people) is a good place to take the temperature of the country’s economy.
Image: The city of Chongqing
Cathy Zhou and her mother Mrs Deng stuffed dumplings while describing their economic worries to Sky News.
Cathy has been unemployed since the end of COVID-19. She said she can’t find a job that pays her enough to live on and that salaries have halved.
Image: Cathy Zhou, currently unemployed in Chongqing
“I used to be the headmaster of a training school,” Ms Zhou said. “Some of my friends have been at home for one or two years, looking for jobs, but can’t find any. They stay home, get some hope and look again.”
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She added: “Before my friends would tell me they buy bags, buy clothes, but now they are shopping less and everyone is saving.”
Image: Mrs Deng, a retired factory worker in Chongqing
Ms Zhou’s retired mother Mrs Deng worked in a factory for almost 30 years.
“The younger generation have less stable jobs, if they lose it they still need to pay their mortgage, so we have to save money to help them,” she said.
With Chinese New Year around the corner, the government is trying to boost consumer demand.
It’s expanded a list of subsidies to encourage people to trade in old electric products, like rice cookers and televisions, for new ones.
Image: The government is trying to boost consumer demand
Last year, China announced a massive economic stimulus package to buy local government debt worth $1.4trn (£1.15trn) over five years.
On New Years Eve, China’s President Xi Jinping said: “China’s economy has rebounded and is on an upward trajectory.”
But President Xi also acknowledged there is deep worry too.
“The concerns of the people about jobs and incomes, elderly and childcare, education and medical services are always on my mind,” the president said. “This year, basic pension has been raised, and mortgage rates have dropped.”
Image: Young people on the streets of Chongqing
The other concern for China has been stubbornly high youth unemployment as almost one in five can’t find a job.
Economic analyst at the Economic Intelligence Unit, Xu Tianchen, said: “I think the government is quite worried because if unemployment continues to grow, it will lead to issues with social instability and that is not something the government would tolerate.”
In 2023, President Xi told young people they would need to accept the hardship and “eat bitterness”.
But now the government appears to be softening its message and looking for levers to pull to create jobs and boost consumption.
Over a plate of steaming dumplings, Ms Zhou said: “I don’t think there is any ‘obvious’ results coming out of eating bitterness.”
Her best friend Pipi agreed: “If you want to get to the next level, you have to work harder and put in more effort than other people or you will just fall behind.”
It was in the evening that the bombing started to intensify.
Salah Jundia, his father and brothers huddled together in their home in Shujaiyya, just east of Gaza City, trying to work out what to do.
It was too risky for them to leave at night. There were a lot of them too. Extended family living across four storeys. They decided they would wait until after dawn prayers.
The explosion tore through the building just before 5am, collapsing one storey on to the next.
Image: The aftermath of Israel’s bombing campaign in Shujaiyya, just east of Gaza City
Image: Salah Jundia
Jundia says he survived because pieces of bedroom furniture fell on top of him.
Then he looked for his father and brothers.
“I found one of them calling for help. I removed the rubble covering him with my hands. Then I saw another brother covered in rubble but he was dead,” he told Sky News.
Jundia added: “My father was also dead. My other brother was also dead. We got them out and that is when I saw that the whole building had collapsed.”
Over the next few hours, they scrambled to rescue who they could.
An aunt and uncle and one of their children, Shaimaa. Uncle Imad and his son Mohammad. The bodies of Montasir and Mustaf.
Image: One of the child victims of the attack on the home near the Gaza City
Image: Another one of child victims of the attack
Jundia says he could hear cries for help, but they were coming from deep in the rubble and were impossible to reach.
The rescue teams on site – civil defence they are called – did not have the kit to clear through three floors of 500 square metres, 30cm slabs of concrete.
Image: Rescuers drilling to try and reach the people trapped below the rubble
Image: Efforts to free those trapped beneath the rubble near the Gaza City
In the afternoon, Jundia says Israel’s Defence Forces (IDF) told rescue teams to leave as they would be resuming their bombardment.
Jundia buried the bodies he had managed to pull out but he knew 15 of his family members, 12 of them children, were still somewhere inside the rubble, still crying for help.
He made a desperate video appeal, begging the Red Cross and Arab countries to pressure Israel to grant access to the site. It was picked up on a few social media accounts.
Israel won’t allow heavy equipment into Gaza. No diggers or bulldozers, nor the fuel or generators to run them.
They say it will fall into Hamas’s hands.
It was a major sticking point during the ceasefire and it is a major issue now as the bombardment continues, given the fact that hundreds if not thousands of civilians might survive if there were the equipment to extract them.
Image: Members of Salah Jundia’s family left alive after the attack
Image: Salah Jundia and his surviving family
Civil defence trying to get to the Jundia family home over the next few days were halted because the IDF were in the vicinity. A family friend tried himself and was killed.
The footage that our camera teams have shot in Shujaiyya over the past two weeks shows how civil defence teams struggle to save those who are trapped and injured with the most rudimentary of equipment – plastering trowels, sledgehammers, ropes and small drills.
“The tight siege stops civil defence equipment from getting in,” says one.
They added: “So we are taking much longer to respond to these events. Time is a factor in getting these people out. So we call immediately for the necessary equipment to be allowed in for the civil defence to use.”
The IDF say they are investigating the circumstances around the Jundia family as a result of our enquiries.
In relation to the access of heavy equipment into Gaza, they say they work closely with international aid organisations to enable the delivery of humanitarian activities in accordance with international law.
The last contact Jundia had from beneath the rubble was a phone call from his uncle Ziad, three days after the strike.
“The line was open for 25 seconds then it went dead. We don’t know what happened. We tried to call, but there was no answer,” he says.
He and his family were displaced several times before they returned home to Shujaiyya – to Rafah in the south, then Khan Younis and Deir al-Balah.
Along the way, Jundia lost one brother and a nephew to Israeli bombs.
“We were happy and all the family came back. We went back to our house. It was damaged, but we improvised and we lived in it. We have nothing to do with the resistance. We are not interested in wars. But we have been gravely harmed,” he says.
China’s economy performed better than expected in the first quarter of the year – but it reflects a moment in time before the explosive trade war with the US, which has seen the world’s two biggest economies effectively decouple.
Economists had predicted that gross domestic product would grow by about 5.1% in January to March, compared with a year earlier. In the end, it grew 5.4%.
But these impressive figures obscure the very serious challenges China’s economy is facing in the wake of Donald Tump’s trade war – and it is almost certain growth will not remain this strong as the year goes on.
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It was in the evening that the bombing started to intensify.
Salah Jundia, his father and brothers huddled together in their home in Shujaiyya, just east of Gaza City, trying to work out what to do.
It was too risky for them to leave at night. There were a lot of them too. Extended family living across four storeys. They decided they would wait until after dawn prayers.
The explosion tore through the building just before 5am, collapsing one storey on to the next.
Image: The remains of Salah Jundia’s home in Shujaiyya, just east of Gaza City
Image: Salah Jundia
Jundia says he survived because pieces of bedroom furniture fell on top of him.
Then he looked for his father and brothers.
“I found one of them calling for help. I removed the rubble covering him with my hands. Then I saw another brother covered in rubble but he was dead,” he told Sky News.
Jundia added: “My father was also dead. My other brother was also dead. We got them out and that is when I saw that the whole building had collapsed.”
Over the next few hours, they scrambled to rescue who they could.
Image: One of the child victims of the attack on the home near the Gaza City
Image: Another one of child victims of the attack
An aunt and uncle and one of their children, Shaimaa. Uncle Imad and his son Mohammad. The bodies of Montasir and Mustaf.
Jundia says he could hear cries for help, but they were coming from deep in the rubble and were impossible to reach.
The rescue teams on site – civil defence they are called – did not have the kit to clear through three floors of 500 square metres, 30cm slabs of concrete.
Image: Rescuers drilling to try and reach the people trapped below the rubble
Image: Efforts to free those trapped beneath the rubble near the Gaza City
In the afternoon, Jundia says Israel’s Defence Forces (IDF) told rescue teams to leave as they would be resuming their bombardment.
Jundia buried the bodies he had managed to pull out but he knew 15 of his family members, 12 of them children, were still somewhere inside the rubble, still crying for help.
He made a desperate video appeal, begging the Red Cross and Arab countries to pressure Israel to grant access to the site. It was picked up on a few social media accounts.
Israel won’t allow heavy equipment into Gaza. No diggers or bulldozers, nor the fuel or generators to run them.
They say it will fall into Hamas’s hands.
It was a major sticking point during the ceasefire and it is a major issue now as the bombardment continues, given the fact that hundreds if not thousands of civilians might survive if there were the equipment to extract them.
Image: Members of Salah Jundia’s family left alive after the attack
Image: Salah Jundia and his surviving family
Civil defence trying to get to the Jundia family home over the next few days were halted because the IDF were in the vicinity. A family friend tried himself and was killed.
The footage that our camera teams have shot in Shujaiyya over the past two weeks shows how civil defence teams struggle to save those who are trapped and injured with the most rudimentary of equipment – plastering trowels, sledgehammers, ropes and small drills.
“The tight siege stops civil defence equipment from getting in,” says one.
They added: “So we are taking much longer to respond to these events. Time is a factor in getting these people out. So we call immediately for the necessary equipment to be allowed in for the civil defence to use.”
The IDF say they are investigating the circumstances around the Jundia family as a result of our enquiries.
In relation to the access of heavy equipment into Gaza, they say they work closely with international aid organisations to enable the delivery of humanitarian activities in accordance with international law.
The last contact Jundia had from beneath the rubble was a phone call from his uncle Ziad, three days after the strike.
“The line was open for 25 seconds then it went dead. We don’t know what happened. We tried to call, but there was no answer,” he says.
He and his family were displaced several times before they returned home to Shujaiyya – to Rafah in the south, then Khan Younis and Deir al-Balah.
Along the way, Jundia lost one brother and a nephew to Israeli bombs.
“We were happy and all the family came back. We went back to our house. It was damaged, but we improvised and we lived in it. We have nothing to do with the resistance. We are not interested in wars. But we have been gravely harmed,” he says.