Gathering Clouds over the Chinese Economy
==========
China's economy faces significant troubles, including a bursting credit and housing market bubble, with falling housing prices and loan defaults from major developers like Evergrande and Country Garden; local government finances are strained due to reduced land sales; the GDP deflator has declined for five consecutive quarters; China's population is rapidly declining due to the one-child policy, exacerbating economic challenges; an estimated 65 to 90 million dwellings are unoccupied; President Xi Jinping's policies, including a zero-tolerance Covid approach and a rollback of Deng Xiaoping's reforms, have diminished foreign confidence and investment; rising protectionism in the US and Europe threatens China's manufacturing exports; the Biden Administration has maintained Trump-era tariffs, and Trump has proposed a 60% tariff on Chinese imports, risking a recession in China; these factors suggest a potential Japanese-style lost decade for China, impacting global economic growth but potentially lowering inflation through reduced commodity prices.
#ChineseEconomy #HousingBubble #XiJinping #Protectionism #GlobalEconomy #Inflation #CreditMarket #ForeignInvestment #Gdp #PopulationDecline
https://www.aei.org/economics/gathering-clouds-over-the-chinese-economy/
American Enterprise Institute /
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2024-10-21 20:50:06
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wss://relay.nostr.band/allPublished at
2024-10-21 20:50:06Event JSON
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"content": "Gathering Clouds over the Chinese Economy\n==========\n\nChina's economy faces significant troubles, including a bursting credit and housing market bubble, with falling housing prices and loan defaults from major developers like Evergrande and Country Garden; local government finances are strained due to reduced land sales; the GDP deflator has declined for five consecutive quarters; China's population is rapidly declining due to the one-child policy, exacerbating economic challenges; an estimated 65 to 90 million dwellings are unoccupied; President Xi Jinping's policies, including a zero-tolerance Covid approach and a rollback of Deng Xiaoping's reforms, have diminished foreign confidence and investment; rising protectionism in the US and Europe threatens China's manufacturing exports; the Biden Administration has maintained Trump-era tariffs, and Trump has proposed a 60% tariff on Chinese imports, risking a recession in China; these factors suggest a potential Japanese-style lost decade for China, impacting global economic growth but potentially lowering inflation through reduced commodity prices.\n\n#ChineseEconomy #HousingBubble #XiJinping #Protectionism #GlobalEconomy #Inflation #CreditMarket #ForeignInvestment #Gdp #PopulationDecline\n\nhttps://www.aei.org/economics/gathering-clouds-over-the-chinese-economy/",
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