{"id":11716,"date":"2023-09-16T14:19:06","date_gmt":"2023-09-16T14:19:06","guid":{"rendered":"http:\/\/lonecandle.com\/?p=11716"},"modified":"2023-09-16T14:19:06","modified_gmt":"2023-09-16T14:19:06","slug":"chinas-economy-is-slowing-down-what-gives","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=11716","title":{"rendered":"China\u2019s economy is slowing down. What gives?"},"content":{"rendered":"\n<p>\n\n&#8220;China\u2019s economy is out of balance and has been for some time. Investments dominate the country\u2019s economy, far more than consumption \u2014 that is, what households are spending. It didn\u2019t matter so much when investment juiced China\u2019s GDP in good times, and indeed, kept China\u2019s economy afloat during the Covid-19 pandemic.<\/p>\n\n\n\n<p>But that investment playbook has been losing its potency. A chunk of&nbsp;<a href=\"https:\/\/www.wsj.com\/world\/china\/china-economy-debt-slowdown-recession-622a3be4\" target=\"_blank\" rel=\"noreferrer noopener\">investments are unproductive<\/a>&nbsp;\u2014 for example, a shiny new airport is great, but if it sits empty and no one travels through it, that\u2019s not a great return on investment. But whether the airport is busy or a ghost town, it required bonds and loans to build. That produced growth, but it also increased China\u2019s debt, so much so that right now,&nbsp;<a href=\"https:\/\/asia.nikkei.com\/Business\/Markets\/China-debt-crunch\/China-s-debt-ratio-hits-record-high-at-3-times-GDP\" target=\"_blank\" rel=\"noreferrer noopener\">it\u2019s triple \u2014 yep, around 300 percent \u2014 the amount of China\u2019s economic output<\/a>. \u201cThat doesn\u2019t really matter until the debt has to be settled. More stimulus simply increases debt and delays the reckoning,\u201d Morgan said.<\/p>\n\n\n\n<p>What that reckoning might look like is hard to answer because the Chinese government and its leader, President Xi Jinping, are not exactly known for transparency. As Morgan sees it, China is dealing with a \u201cslow fizzle.\u201d But how Xi and his government manage that fizzle is far from an easy question for anyone to answer.&#8221;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.vox.com\/world-politics\/2023\/8\/29\/23845841\/chinas-economy-xi-expert\">https:\/\/www.vox.com\/world-politics\/2023\/8\/29\/23845841\/chinas-economy-xi-expert<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;China\u2019s economy is out of balance and has been for some time. Investments dominate the country\u2019s economy, far more than consumption \u2014 that is, what households are spending. It didn\u2019t matter so much when investment juiced China\u2019s GDP in good times, and indeed, kept China\u2019s economy afloat during the Covid-19 pandemic.<br \/>\nBut that investment playbook has been losing its potency. A chunk of investments are unproductive \u2014 for example, a shiny new airport is great, but if it sits empty and no one travels through it, that\u2019s not a great return on investment. But whether the airport is busy or a ghost town, it required bonds and loans to build. That produced growth, but it also increased China\u2019s debt, so much so that right now, it\u2019s triple \u2014 yep, around 300 percent \u2014 the amount of China\u2019s economic output. \u201cThat doesn\u2019t really matter until the debt has to be settled. More stimulus simply increases debt and delays the reckoning,\u201d Morgan said.<\/p>\n<p>What that reckoning might look like is hard to answer because the Chinese government and its leader, President Xi Jinping, are not exactly known for transparency. As Morgan sees it, China is dealing with a \u201cslow fizzle.\u201d But how Xi and his government manage that fizzle is far from an easy question for anyone to answer.&#8221;<\/p>\n<p>https:\/\/www.vox.com\/world-politics\/2023\/8\/29\/23845841\/chinas-economy-xi-expert<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[89,217,165],"class_list":["post-11716","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-china","tag-economics","tag-economy"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/11716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11716"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/11716\/revisions"}],"predecessor-version":[{"id":11717,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/11716\/revisions\/11717"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}