Hopes that China's reopening would power the global economy have been quickly dashed.

But is that disappointment warranted?

This is not something we have seen in previous cycles that this entrench and pervasive lack of confidence playing out in the Chinese

economy.

So this is a very difficult environment.

Unfortunately, it doesn't seem to be an easy fix here.

I'm Allison Nathan, and this is Goldman Sachs exchanges. China's emergence from COVID lockdowns was expected to boost the global economy,

but a string of disappointing data is giving investors, policymakers, and market watchers a new reason to worry.

To explain the drivers and the outlook for the world's second largest economy,

I'm speaking with my colleague in Goldman Sachs research, Wei Shan, our chief China economist.

Wei, welcome back to the program.

Thanks, nice to be on.

Wei, a lot's happened.

Let's just start with some context.

How did we get here?

So we know that all countries went through COVID and after reopening most economies will show a strong and sustained recovery. In the case of China, it's a bit disappointing that the scenes that the recovery and reopening impulse only lasted for one quarter.

The first quarter was good, but in the second quarter, the recovery seemed to have fizzled out and also what surprising was the sort of

spillover effect that also didn't play out as investors were hoping for whether it's the

stronger oil demand translating into higher commodity

prices or outbound travel being very strong. We saw some of it, but not to the extent the market's

expecting.

In retrospect, what was the key drivers of China's

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