Deleveraging in China and the Japan trap
CHINA ADVISORY
- Report
13 Jun 2023
by Andrew Collier
China’s economy continued to slow in April and May, with only auto sales showing strength due to low base effects in 2022. The government remains steadfast on property deleveraging although there are new rumors of further stimulus, but no firm announcement. The key issue for China’s economy is how provincial governments handle the deleveraging of the property sector without causing an economic and fiscal crisis—or a Japan trap of economic stagnation.
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