China's Economy Is Cracking Under Pressure as National Congress Meets to Set Growth Goals

China's rise as a global economic powerhouse is showing serious cracks as its National People's Congress opens Thursday, drawing about 3,000 deputies to Beijing to set annual growth targets and approve a five-year policy blueprint through 2030. A prolonged housing collapse with home prices down 20% or more from 2021 has wiped out hundreds of thousands of jobs, leaving over 16% of young Chinese unemployed. Despite reporting "around 5%" growth in 2025, economists warn the economy is losing momentum, masking deep structural problems with an export surge that produced a record $1.2 trillion trade surplus. Meanwhile, President Xi Jinping continues consolidating power, with nine military officers removed from the legislature just days before the congress opened. Xi's government remains heavily focused on AI, robotics, and electric vehicles, but the IMF has urged China to cut massive state subsidies propping up these industries.