Ever since the Covid-19 pandemic erupted, concerns about “K-shaped” economies have proliferated. Initially a US-centric description of the post-pandemic recovery, the K highlights a sharp divergence in which different parts of the economy experience drastically different outcomes. While the K-shaped narrative is still heavily influenced by trends in the United States, uneven economic performance and sharp divergences between sectors are far more apparent in China . JPMorgan noted that hi-tech manufacturing accounted for almost 40 per cent of the growth in industrial output in the first five months of this year. Along with AI, China’s electric vehicle sector continues to be “one of the clearest examples of the economy’s external resilience”, Fitch Ratings said in a report.