Mounting economic problems for Chinese government
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The Chinese government is facing mounting economic problems, including deflation, a fall in the stock markets, and worsening issues in the housing and real estate sector. The Biden administration's economic offensive and the threat of a 60% tariff on Chinese goods by Donald Trump further compound the situation. Consumer prices have fallen at their fastest rate in 15 years, and deflationary forces are undermining consumer and business confidence. The upcoming National People's Congress will be closely watched for the government's growth target and deficit projections. The crisis in the real estate and property development sector, with over 50 Chinese property firms defaulting on their debts, is a major concern. The government is pressuring financial institutions to provide loans to property developers, but this contradicts their previous decision to tighten credit. The stock market is also experiencing a decline, with the benchmark MSCI down by over 60% from its peak in early 2021. Without major government initiatives, the economic downturn is expected to continue.

#ChineseGovernment #Economy #Deflation #StockMarkets #Housing #RealEstate #BidenAdministration #Tariffs #NationalPeople'sCongress #GrowthTarget #DeficitProjections #PropertyDevelopment #FinancialInstitutions #StockMarket

https://www.wsws.org/en/articles/2024/02/16/pfpd-f16.html