A series of recent analyses have highlighted growing concerns over China's economic situation, with a particular focus on the implications of President Xi Jinping's policy priorities. Experts point to a global trend toward economic bifurcation, with the U.S. and China at the forefront, necessitating multinational solutions to new challenges. Deflation in China is poised to impact other key markets, urging the U.S. to seek multilateral solutions. China's central role in the global supply chain, despite its economic difficulties, underscores the need to look beyond bilateral trade data to understand global economic dynamics. The Chinese economy's instability is leading consumers to opt for more affordable brands, indicating a shift in spending behavior. The property market's issues are now affecting the shadow banking sector, raising alarms about the broader economic stability. Attempts to boost household spending are hindered by a lack of consumer confidence, as firms default on debt. The situation calls for a reevaluation of trade strategies, moving away from geopolitics towards solving global problems. President Xi's focus on national security and technological upgrades over economic growth is identified as a central reason for the economic downturn. This shift has sparked debate over whether China can transition to a new growth model swiftly enough to avoid the negative consequences of abandoning its previous growth strategy.
Xi Jinping needs to loosen up and find a way to inspire confidence among Chinese consumers, writes @KarishmaJourno. Looking to previous leaders is a good start https://t.co/1xEqB8TLtj via @opinion
Xi Jinping's move to shun the old playbook of unleashing broad stimulus is spurring discontent, as a housing crisis cuts into household wealth. https://t.co/AOS24E5Y2s
China’s economic model is crumbling. A look at how the challenges are multiplying after years of rapid growth, in eight charts. https://t.co/LHHzsdLFLL https://t.co/LHHzsdLFLL
Chinese President Xi Jinping’s consolidation of power has cleared the path for him to put the economy on a more sustainable footing. But he’s failing to convince the nation that’s a good idea. https://t.co/vPZRhnGeCz
The danger for Xi is that the “fallout of the decline of the old growth model might be so great it prevents him from moving into the new growth model. The big question is, can you make that change fast enough?” @Bloomberg https://t.co/lAN6eL0icj
The central reason for China’s economic malaise is that Xi Jinping has decided to make national security and technological upgrading—not economic growth—his main policy priorities, Arthur R. Kroeber writes. https://t.co/izXcsKfoeu
Xi Jinping needs to loosen up and find a way to inspire confidence among Chinese consumers, writes @KarishmaJourno. Looking to previous leaders is a good start https://t.co/NymBJWbMbp via @opinion
In our @MacroPoloChina Feb newsletter, I recommended @bnaughton book "The Rise of China’s Industrial Policy: 1978-2020.” It is the best I’ve seen in the market that systematically elaborates on China’s industrial policies since the Reform and Opening. What stood out to me in… https://t.co/2w50XY1GE0
Xi Jinping's move to shun the old playbook of unleashing broad stimulus is spurring discontent, as a housing crisis cuts into household wealth. https://t.co/ej0f7klPLx
Xi Jinping needs to loosen up and find a way to inspire confidence among Chinese consumers, writes @KarishmaJourno. Looking to previous leaders is a good start https://t.co/sLSpAL56Ir
It is time for the United States to pivot away from bilateral or regional trade deals driven by geopolitics and start crafting new rules, tariffs, and subsidies aimed at solving the world’s most pressing challenges, argues @petereharrell. https://t.co/aPiOyCEC9B
"We are entering an era of greater geopolitical rivalry and more transactional economic relations. The downward pressure on global real rates that has marked much of the era of globalization should be reversed." https://t.co/RcnXTnnRTz
David Daokui Li on #China's #economy: The emphasis on social governance in recent years has exerted pressure on economic #development, with the main problem now being how to shift from preventing "economic overheating" to preventing "economic overcooling." https://t.co/0FmCODL5q4
1/5 "Business and economic models like China’s that are based on large trade surpluses “may no longer be politically sustainable,” Mario Draghi said in a recent speech. “This change in international relations will affect the global supply of savings.”" https://t.co/GMN4ra0Cvu
“Deals focused on specific sectors can move the trade debate away from the old, unproductive clash between geopolitics and economics and instead focus on solving global problems.” Read @petereharrell on the case for a new, narrower U.S. approach to trade: https://t.co/8qNrVPC8g9
As firms default on debt, China hopes to boost household spending—but it lacks consumer confidence. https://t.co/tBu7dAgeMq
China Crumbles: Xi's economic miracle is running into serious problems. Now the property market contagion is spreading to the shadow banking sector, and authorities are panicking on what to do. A THREAD: 🧵👇🔥 https://t.co/wNT8lKPnVC
China’s wobbly economy is pushing shoppers to trade down from L’Oreal and Starbucks to Uniqlo and KFC. https://t.co/oG83MjNSVc
Nice piece from the Economist (@econcallum and @Birdyword apparently) on China's ongoing centrality to global supply -- and the need to look beyond the US bilateral trade data to understand the current dynamics of the global economy. 1/ https://t.co/Sjr0z9xYNe
Deflation in China will soon become a problem for other key markets—which the U.S. will have to address multilaterally, or suffer a bruising race to the bottom, Diana Choyleva writes. https://t.co/izXcsKfoeu
Commentary: There is a global trend toward economic bifurcation with the U.S. and China leading the charge — and multinational solutions are needed to address the new challenges. https://t.co/LZi8KrBt28