Over the year, teams from the Atlantic Council GeoEconomics Center and Rhodium Group have taken a data-driven dive into China’s economy to address a fundamental question: Is the Chinese economic system becoming more or less like other open-market economies?
In Q2 2022 China’s economic growth slowed to 0.4% YoY, despite aggressive steps to support companies, boost consumption, and address youth unemployment. These measures amounted to short-term firefighting and do not address structural issues slowing Chinese growth.
The Chinese 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 deteriorating prospects in the property sector are key factors.
China moved farther from market economy norms in Q4 2021. Chinese authorities were active in four of the six economic clusters that make up the China Pathfinder framework: financial system development, competition policy, innovation, and portfolio investment openness.
In Q3 2021, a Chinese economy already straining under COVID was rocked by energy shortages, while Evergrande, the country’s largest real estate developer, inched toward a full-blown debt crisis. Beijing also broadened its crackdown on tech giants, worsening investor sentiment
Atlantic Council GeoEconomics Center Senior Director 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 and see the challenges facing China’s economy.
Over the past eight months, teams from the Atlantic Council GeoEconomics Center and Rhodium Group have taken a data-driven dive into China’s economy to address a fundamental question: Is China becoming more or less like other open market economies?