China’s leadership is aiming for economic growth of around 5% this year. That’s a pretty ambitious goal given the confluence of problems facing the world’s second-largest economy: sluggish consumer spending, a shaky property market, a multi-trillion dollar stock rout, a US drive to curb its big tech ambitions, record youth unemployment and towering local government debt. The impact of these strains has been felt around the globe on everything from commodity prices to equity markets. And President Xi Jinping’s government doesn’t have great options to fix things. That’s sparked a discussion about whether the Chinese economy is headed for a Japan-style malaise after 30 years of unprecedented growth.
China met its 2023 growth target — also around 5% — but a repeat performance will be tough to pull off. The base of comparison this time around is a lot less favorable now…
