Beijing: China is the second largest economy in the world and to keep his country in this position, Jinping keeps using all kinds of tricks, one of which is the strategy of ‘making the neighbors beggars’, in which the supply chain has to be controlled. Meanwhile, the global financial institution IMF, while warning Beijing, has exposed to the world the destruction of China, which Jinping was trying hard to hide. However, Jinping is still not ready to accept this. He has shifted focus to America’s efforts to ‘strangle’ it.
What is the condition of China’s economy?
The people of the country themselves created a scandal: The growth rate of resale sales this month was only 1.3%, which is the weakest performance since Covid restrictions are lifted in December 2022. This directly shows that Chinese consumers are afraid to spend and their confidence in the country’s economy has completely shaken.
Sluggish production: The growth of industrial production has slowed down to a 15-month low (4.8%). ‘China’s production capacity, considered the world’s factory, is struggling with the lack of both domestic and international demand.
Anxiety about investing: There was an annual decline of 2.6% in fixed asset investment in the January-November period, reflecting a lack of new capital spending in the economy.
Jinping is hiding China’s destruction
On the other hand, the biggest ‘disaster’ of China that Jinping is hiding is the ‘real estate crisis’. About 70% of China’s household wealth is invested in real estate and there has been a decline in this. This simply means that the value of citizens’ savings and property is decreasing and they are afraid of spending. The situation is such that Vanke, a large Chinese residential real estate developer, is struggling to avoid default.
IMF warnings and suggestions
Putting China’s condition before the world, IMF has warned that Beijing may have to spend 5% of its GDP for 3 years to avoid economic crisis. IMF has advised China not to depend only on exports. The global organization says that instead of a model focusing on production, China should focus on domestic consumption model. Export and investment have been China’s priority for a long time, but now both these models have become shaky.
IMF believes that giving monetary incentives to China will not provide any benefit but now this country needs changes in its infrastructure.
Jinping shifted focus to ‘strangling’
