1. China’s industrial production expanded 4.5% in May from a year earlier, surpassing the 4.3% average forecast in a Caixin survey [para. 1][para. 4]. This growth was fueled by booming demand for artificial intelligence (AI) and resilient exports, which masked the negative impact of a protracted property crisis [para. 1].2. The May data highlights a deepening divergence within China’s economy: high-tech manufacturing is surging, while traditional building materials continue to slump [para. 2]. Equipment manufacturing grew 9.5% and accounted for nearly 80% of total industrial output growth, while the electronics sector surged 17% due to AI supply chains [para. 4].3. Overseas demand remained a crucial pillar, with industrial export delivery values climbing 10.1% in May [para. 5].4. Performance among China’s “new three” green technology sectors—new-energy vehicles (NEVs), lithium-ion batteries, and solar products—was mixed [para. 6]. NEV production jumped 17.8%, but solar cell output tumbled 20.4% as the sector faced intense competition [para. 6].5. The ongoing housing downturn continued to hammer heavy industry: crude steel output dropped 2.7%, and cement output fell 8.1% [para. 7].6. Weak domestic consumption squeezed downstream sectors, with alcohol and beverage manufacturing contracting 2.7% [para. 8].AI generated, for reference only