In Q2 2022 China’s economic growth slowed to 0.4 percent year-on-year, despite aggressive steps by authorities to support struggling companies, boost consumption, and address the spike in youth unemployment. These measures amounted to short-term firefighting and do not address the structural issues slowing Chinese growth.
China’s economy slowed and its economic system moved away from market economy norms in Q1 2022. Shanghai’s zero-COVID lockdown, a crackdown on technology firms, and the property sector are key factors.
China moved farther from market economy norms in the fourth quarter of 2021. Chinese authorities were active in four of the six economic clusters that make up the China Pathfinder analytical framework: financial system development, competition policy, innovation, and portfolio investment openness.
In the third quarter of 2021, a Chinese economy already straining under COVID-19 was rocked by energy shortages, while Evergrande, the country’s largest real estate developer, inched toward a full-blown debt crisis.
Josh Lipsky’s Big Story unpacks the key themes inside the data and what it means for China’s economy past, present, and future. Explore the interactive narrative here and see the challenges facing China’s economy.
Over the past eight months, teams from the Atlantic Council and Rhodium Group have taken a dive into China’s economy to address a fundamental question: Is China becoming more or less like other open market economies?