The People's Bank of China has issued a stark warning regarding the structural health of the Chinese economy, describing the current growth pattern as a serious risk.
The central bank highlighted a deepening divergence within the economy, characterized as a 'K-shaped' recovery where capital is flooding into the artificial intelligence sector while other critical parts of the economy are struggling.
This assessment underscores growing concerns that the headline strength in tech is masking underlying weakness in broader industrial and consumer activity.
The PBOC's intervention signals a shift in tone from Beijing's monetary authorities, who have previously focused on liquidity support.
By explicitly naming the uneven distribution of growth as a systemic risk, the central bank is drawing attention to the fragility of sectors outside the tech bubble.
This comes as global markets have noted signs of faltering momentum in China following a strong first quarter, with recent data suggesting that the initial post-pandemic rebound is losing steam in traditional manufacturing and services.