Commentary
All 24 members attending the recent Politburo meetings in Beijing spoke of the urgent need for help in China’s economy. This marks a significant shift from a year ago when the authorities were reluctant to acknowledge the country’s economic challenges. The recognition of these problems has been a gradual process, starting from the Two Sessions in the spring to the most recent meetings. Despite some remedial efforts taken by Beijing, they have not been substantial enough to address the crisis effectively. The latest meeting has resulted in more discussions than concrete actions or plans.
The grim state of China’s economy is evident in recent data, demonstrating that Beijing’s current strategies have not been successful in reversing the downward trend. Housing sales in July were significantly lower compared to the previous year, and the Purchasing Managers Index (PMI) indicated a contraction in various sectors. Despite efforts to support the real estate market and reduce interest rates, the impact has been minimal. The slow progress and limited scope of these measures have failed to boost confidence among consumers and businesses.
Public investments in specific industries like electric vehicles and green energy have not yielded the desired results due to weak domestic demand and external challenges. The lack of effective policies and the failure to address fundamental issues have further exacerbated the economic slowdown in China.
China’s struggles in key industries are highlighted by the success of South Korea and Taiwan, underscoring the need for more comprehensive actions. Despite promises of additional support for the economy, there is a lack of concrete plans from CCP leaders. The uncertainty surrounding Beijing’s approach reflects the challenges of devising effective solutions to revive China’s economy.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
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