China’s economy has emerged from “zero-Covid” without the inflation that occurred in some other major economies but with reduced consumption, minimal private investment growth, a weakened real estate sector, high youth unemployment, and constrained local government finances. Beijing is banking on a surge of new household spending and is planning only marginal new stimulus measures. Chinese leaders, however, are sending contradictory signals to entrepreneurs and foreign investors. China will almost certainly achieve its conservative growth target of 5 percent this year. But in the next few years, Beijing’s prioritization of national security over economic reforms will pose a risk to China’s economic trajectory.
To read the full article by Gerard DiPippo please click here.
Our thanks to Mr. DiPippo and the team at China Leadership Monitor for sharing this analysis.
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