China’s many systemic problems dominate its outlook for 2024 | George Magnus
www.theguardian.com
Japan’s example 30 years ago shows islands of excellence can combine with deep structural imbalances

Cross-posted from: https://beehaw.org/post/10753302

The Chinese Communist party’s prickly attitude to criticism is not uncommon. The reality, though, is that systemic problems have over the years become features in China’s $19 trillion economy. The real estate market has tipped over after an almost unbroken 20-year boom, which the government itself encouraged. At about a quarter of GDP, housing now faces years of shrinkage as it adjusts to chronic oversupply and lower household formation. Property developers, local governments and state enterprises have high levels of debt and many face debt service difficulties. The virtual absence of inflation reflects inadequate aggregate demand.

Stalled productivity growth, the politicisation of regulation and the business environment, rapid ageing, high youth unemployment and inequality also figure prominently.

  • tardigrada@beehaw.orgOP
    2·
    6 months ago

    Chinese workers witness biggest decline in hiring salaries on record

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    China has seen widespread salary cuts in various sectors [in 2023] including technology, finance and among local government workers, a result of regulatory crackdowns and strained public finances. Beyond that, companies are also under pressure from weak domestic and overseas demand for their products.