16min chapter

Many Happy Returns cover image

Red Flags: China’s Economic Troubles, with George Magnus

Many Happy Returns

CHAPTER

China's Economic Crossroads

This chapter examines the looming risk of a balance sheet recession in China by drawing comparisons to Japan's past economic struggles. It explores the challenges within China's economic framework, particularly how local governments and state enterprises are affected by real estate issues and a lack of effective consumption strategies. The discussion highlights the tension between governmental rhetoric on boosting consumer demand and the reality of ongoing investment-focused policies, raising questions about the effectiveness of recent economic measures.

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