CHINA — CHINA'S 'K-SHAPED' RECOVERY DEEPENS REGIONAL DIVIDE; TECH HUBS SURGE

China's economic recovery is exhibiting a distinct "K-shaped" pattern, creating a widening gap between its regions. High-tech hubs are thriving, with the eastern Zhejiang province reporting 5.7% GDP growth in H1 2026, while areas dependent on traditional industries and domestic demand, such as the northeastern Liaoning province, lagged with just 2.5% growth. This bifurcation highlights the uneven impact of Beijing's push for technological self-sufficiency and its campaign against industrial overcapacity.