China

Critical sectors of the Chinese economy, including real estate and exports, continue to send up warning flags, as seen by economic statistics. But so far, the response from Chinese politicians and bureaucrats has been lackluster and has had little effect. The official response has been more concerned with managing the story than with really doing something about it. After a brief lull after the Politburo meeting, outflows from Chinese markets picked up speed in August. What must happen to regain investors' trust? Predictions for 2023 included…

A leading American financial newspaper has said that China's economy, the world's second biggest, is in severe crisis and that the country's "broken" model of development during the last four decades is visible even in outlying regions.According to a large Sunday report in The Wall Street Journal, analysts are more pessimistic about China's economic prospects because of unfavorable demographics and a growing gulf between the two countries, which threatens to dampen international investment and trade. It speculated that the current economic downturn may signal the end of an entire era. Currently, the (economic) model has been compromised, the financial daily said. The Wall Street Journal cited Adam Tooze, a history professor at Columbia University who specializes in economic crise...

Chinese Government’s efforts to revive the economy received a further setback as the economy slipped into deflation as consumer prices declined by 0.3% in July, for the first time since February 2021. This follows decline in factory gate prices and weak export and import data, which indicates that the expected pace of China's post-pandemic recovery in demand has not materialized. According to Jim Reid, a strategist at Deutsche Bank, the latest trade data suggests that the Chinese economy was being dragged down by weakness in global demand and a domestic slowdown. Reduced foreign demand for Chinese goods and geopolitical tensions has taken a toll on trade, encouraging international firms to shift investments out of the country. Weak domestic and global demand has pushed factory gate ...

Consumer prices have fallen in China for the first time in almost two years, exports are down, and rumor has it that one of the country's top private property developers is experiencing a liquidity issue. According to interviews with experts conducted by ThePrint, the causes range from previous governmental mistakes to rising debt levels, low consumer confidence, a faltering real estate market, and a continuing trade war with the United States. According to Sriparna Pathak, an associate professor of Chinese studies at O.P. Jindal Global University, falling consumer spending has pushed China's economy into deflation as consumers lose faith in the country's economic future. With economic optimism low, consumers choose to put money aside in case of need. She said, "There are many re...

President Xi Jinping’s message to Chinese people everywhere is crisp: “tell China’s story well.” All organs of the Communist Party of China (CPC) have been harnessed not only in pursuit of the ‘Chinese Dream of National Rejuvenation’ but to also persuade the greatest possible number, both at home and abroad, that this virtuous goal is almost within Beijing’s grasp. In June 2023 alone, four major international forums were held in China to roll out the government’s vision for global human rights governance, promoting China’s cultural strengths, making the CPC more likeable, and for world peace. It should, therefore, strike a dissonant chord to read increasing reports about Chinese citizens, of all social classes and wealth levels, leaving China permanently for foreign countries. ...