Beijing still wants to double the nation’s GDP by 2035, but ‘policymakers feel they need to address social issues to ensure social fairness and justice’, while also protecting state enterprises and the environment.
Small and micro businesses are the backbone of China’s private sector, but many of their owners say they are failing as most help seems to be going to state-backed sectors.
China’s economy has largely recovered from the impact of the coronavirus, but its debt surged in 2020, forcing Beijing to set the bar higher for infrastructure projects amid rising risks of defaults by local governments.
Chinese households are borrowing to the hilt to invest in the country’s economic recovery, but growing debt is eating up disposal income that could otherwise be used to buy goods and services.
The pandemic has inflamed economic disparities between provinces in the north and south of China, with data indicating the divergence is closely correlated to consumer spending.
Analysts say the property developer’s financial and political troubles could signal ‘more tolerance for defaults’ as Beijing pushes ahead with its deleveraging campaign.
‘Psychological’ scarring from the pandemic continues to undermine consumer confidence in China, with lingering anxiety about financial security tarnishing economic recovery.
