The World Bank's latest China Economic Update, Rebalancing Growth, reports that China's economy is projected to slow to 4.4% in 2026 and 4.3% in 2027 as the property sector adjusts and consumer caution persists. High-tech investment and exports are supporting near term resilience, but weaker domestic demand is a drag. The report also examines how China's low carbon transition is reshaping the labor market, with demand for green technical skills and transferable competencies like systems thinking and digital skills expanding beyond traditional low carbon sectors. These skills command wage premiums, but skill gaps are limiting inclusive employment gains. The World Bank recommends strengthening the social safety net to boost consumption and supporting workers with training and portable green skill credentials to make the transition smoother. This is a concrete look at how decarbonization policy intersects with jobs and economic rebalancing in the world's largest emitter.
