China's economy grew at a weaker-than-expected pace in the second quarter, underscoring mounting concerns that the world's second-largest economy remains heavily dependent on exports as sluggish consumer spending and declining investment continue to drag on domestic growth, The Guardian reported Wednesday.

Data released by China's National Bureau of Statistics showed gross domestic product expanded 4.3% from a year earlier in the April-through-June quarter, missing economists' expectations and falling short of China's annual growth target of around 5%.

It marks one of the nation's weakest annual second-quarter growth readings in recent decades.

The only lower quarterly reading in recent years came in the final quarter of 2022, when China was still operating under strict COVID-19 restrictions.

The disappointing GDP report came just one day after Chinese customs data showed exports surged 27% in June, highlighting the widening gap between China's robust overseas shipments and its weakening domestic economy.

While exports continue to fuel growth, demand at home remains soft.

Monthly vehicle exports topped 1 million units for the first time in June, but domestic auto sales fell more than 16% during the month, according to official data.

Retail sales excluding automobiles rose 3% in June, but economists said consumer spending remains too weak to sustain a broader economic recovery.

The latest figures are likely to intensify pressure on Beijing ahead of a meeting of senior Chinese Communist Party officials later this month, where analysts expect policymakers to consider whether added economic stimulus is needed.

Economists have increasingly argued that China must do more to boost household consumption and reduce its reliance on exports, which account for roughly 20% of the country's gross domestic product.

Li Daokui, a prominent Chinese economist and adviser to Beijing's senior leadership, warned over the weekend that local governments have shifted from being engines of economic growth to becoming obstacles.

Li noted that fixed-asset investment — including spending on infrastructure such as roads, bridges, and public works managed by local governments — fell more than 4% in the first five months of the year.

He said similar contractions have occurred only twice since the founding of the People's Republic of China, in 1961 and 1967.

"The intensity and magnitude of this cumulative negative growth are unprecedented," Li said, according to Chinese media reports, warning that declining investment and unemployment threaten Beijing's broader economic objectives if left unaddressed.

China also faces uncertainty abroad despite a temporary easing in trade tensions with the U.S.

While Washington and Beijing remain in a tariff truce, Chinese officials are watching closely as the agreement is set to expire in November, raising the prospect of renewed tariffs that could further pressure exporters.

At the same time, economists say instability stemming from the U.S.-Israel conflict with Iran poses further risks to global economic growth and demand for Chinese exports.

Although China has largely avoided immediate disruptions because of its diversified energy supplies and large reserves, a prolonged global slowdown could weigh heavily on its export-driven economy.

For the first six months of the year, China's economy expanded 4.7%, remaining broadly consistent with the government's annual growth target of around 5% and potentially easing pressure on Beijing to roll out major stimulus measures in the near term.