Receive free Chinese economy updates. We’ll send you a daily email with the latest news. China’s economy is struggling due to an aging population, high debt levels, and government interference. It’s becoming like Japan in the 1990s, when its economy slowed down but didn’t fully collapse. Some experts are suggesting that China could follow a similar path to Japan, either with a temporary comeback or a full-blown financial crisis. Japan experienced temporary comebacks in the early years of its slowdown, thanks to heavy government stimulus. China may also see a temporary rebound due to recent stimulus measures, although its reluctance to spend heavily and increase debt is a concern. China’s tech sector also gives it an advantage over the US in many areas, despite the government’s crackdown on big tech firms. However, the property market is a major negative factor for China, with declining land and home prices and a decrease in real estate investment. The debt bubble created by local governments is also a problem. The long-term outlook for China may mirror Japan’s slowdown, but in the short term, a crisis scenario seems more likely than a big bounceback.
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