Posted 1/15/2024, 12:56:00 AM
China's Economy Slows to 13-Year Low as Property Crisis and Weak Demand Take Toll
- China's inflation rate is falling due to property sector implosion and deleveraging, hitting a 13-year low of 0.2% in 2022
- Exports declined 4.6% in 2022, losing status as top US exporter, while imports fell 5.5% showing weak domestic demand
- Beijing cutting rates and providing targeted stimulus, but resisting household cash handouts to stimulate consumption
- Investing heavily in advanced manufacturing to boost jobs, meet 5% GDP target, and shift up the value chain
- Risks include overcapacity and lack of domestic demand, potentially leading to Japanese-style stagnation if unable to export excess