{"id":126700,"date":"2024-02-07T08:02:57","date_gmt":"2024-02-07T13:02:57","guid":{"rendered":"http:\/\/kendallharmon.net\/?p=126700"},"modified":"2024-02-07T19:12:37","modified_gmt":"2024-02-08T00:12:37","slug":"economist-as-chinas-markets-crash-its-consumers-cower","status":"publish","type":"post","link":"https:\/\/kendallharmon.net\/?p=126700","title":{"rendered":"(Economist) As China\u2019s markets crash, its consumers cower"},"content":{"rendered":"

Most emerging economies struggle to live within their means; China struggles to live up to them. Even in the best of times, the combined spending of its households, firms and government is not enough to buy all that it can produce, leaving a surplus that must be exported: the country has run a trade surplus for 34 of the past 40 years. And these are not the best of times. China is enduring its longest spell of deflation since the Asian crisis over a quarter-century ago. An epic stock market rout since late 2022 has seen investors lose $2 trillion.<\/p>\n

Behind that panic lies a deeper fear among investors and officials, namely that China no longer has a reliable driver of growth. The property boom is over. Cash-strapped developers are afraid to build flats and households are afraid to buy them. The infrastructure mania has run out of road: indebted local governments lack the funds. Exporting goods to the rest of the world, which China relied on for decades to escape poverty, is getting harder as protectionism rises and Western countries become wary of relying on authoritarian states.<\/p>\n

Much therefore rests on one remaining source of growth: boosting the spending of China\u2019s 1.4 billion people.\u201cThe Chinese market, with its vast space and growing depth, will play an important role in boosting aggregate global demand,\u201d Li Qiang, China\u2019s prime minister, told the World Economic Forum in Davos last month. A new imf review of China\u2019s prospects published on February 2nd contains 61 references to the word \u201cconsumption\u201d.<\/p>\n

Read it all<\/a>.<\/p>\n

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As China\u2019s markets crash, its consumers cower https:\/\/t.co\/ue3QhEh3pS<\/a> | $AMD<\/a> $MSFT<\/a> $T<\/a> $QQQ<\/a> $SPX<\/a> $SPY<\/a> $ING<\/a> $GLE<\/a> $NFLX<\/a> $DB<\/a> $BABA<\/a> $RIVN<\/a> $NIO<\/a> $AMD<\/a> $PACW<\/a> $PENN<\/a> $LCID<\/a> #AEX<\/a> $NCLH<\/a> $QQQ<\/a> $SAVE<\/a> $SOFI<\/a> $MARA<\/a> $AAL<\/a> $NVO<\/a> $DIS<\/a> $AMZN<\/a> $JPM<\/a> $CCL<\/a> $TSLA<\/a> #CAC<\/a> #DAX<\/a> $AMZN<\/a> $AMC<\/a> $SPY<\/a> $AAPL<\/a> $META<\/a> $TEAM<\/a> $X<\/a>\u2026<\/p>\n

— 🇫🇷 🇪🇺 🇩🇪 European Investors News 💯🇩🇪 🇨🇰 (@EuropeanTraders) February 7, 2024<\/a><\/p><\/blockquote>\n