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This is the best summary I could come up with:
Democratic nations like the United States rarely politicize their economic statistics — although ask me again if Donald Trump returns to office — but authoritarian regimes often do.
President Xi Jinping is starting to look like a poor economic manager, whose propensity for arbitrary interventions — which is something autocrats tend to do — has stifled private initiative.
Well, international economists are fond of citing Dornbusch’s Law: “The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.” What happened in China’s case was that the government was able to mask the problem of inadequate consumer spending for a number of years by promoting a gigantic real estate bubble.
To outside observers, what China must do seems straightforward: end financial repression and allow more of the economy’s income to flow through to households, and strengthen the social safety net so that consumers don’t feel the need to hoard cash.
And when it comes to strengthening the safety net, the leader of this supposedly communist regime sounds a bit like the governor of Mississippi, denouncing “welfarism” that creates “lazy people.”
Will it try to prop up its economy with an export surge that will run headlong into Western efforts to promote green technologies?
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Um, no, that’s not at all what it’s saying. It is saying China should ease off the cronie capitalism and try a little socialism for ordinary people.
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Feels like I’ve been reading headlines like this for at least 3 years now. If it all finally comes crashing down, it’s gonna be a big one I guess.
That’s because its GDP growth has been hit hard in that same time period. Lifting Covid restrictions didn’t make it come back.
It may not crash, per se, but Japan went through an era of general malaise, and that might be what China gets.
I know the general gist of the situation. Low spending from domestic households, real estate bubble, excessive government influence on industry scaring investors, and so on.
My problem with it is that most headlines make it sound like it’s all gonna implode spectacularly tomorrow. The articles themselves usually paint a more reasonable picture of the situation, similar to your comment. But most people don’t read the article. They just see the headline over and over.
