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In Brief: China’s Struggling Economy

December 6, 2023
In Brief: China’s Struggling Economy
In Brief: China’s Struggling Economy

In Brief: China’s Struggling Economy

Yun Sun, Jude Blanchette, Collin Meisel, and Derek Scissors
December 6, 2023
A lot happens every day. Alliances shift, leaders change, and conflicts erupt. With In Brief, we’ll help you make sense of it all. Each week, experts will dig deep into a single issue happening in the world to help you better understand it.***In the past few years, China’s economy has been struggling. Even since the Chinese Communist Party rolled back pandemic-era restrictions last year, consumer spending has stalled and economic growth slowed — the International Monetary Fund is predicting 4.6 percent growth in China next year, down from 5.4 this year. We asked four experts to tell us about China’s economic troubles, how they could affect the country’s global standing, and what this all could mean for U.S.-Chinese competition. Yun Sun Director, China Program Stimson CenterChina’s economic downturn has been long coming. Most attribute it to structural problems, which do not offer any quick fixes. It does not appear that the economic downturn has affected General Secretary Xi Jinping’s uncontested authority within the party. But the social discontent and people’s lack of confidence in their long-term future do suggest that Beijing will have to turn inward and focus on domestic challenges for the time being.Xi’s prioritization of national security has come to undermine the confidence of foreign investors, which is a key challenge as China tries to retain an affinity with and the engagement of foreign companies. China has taken some measures to reassure foreign investors, including commitment from the top leadership. However, their effectiveness remains to be seen.Beijing’s prioritization of domestic issues has a significant impact on its foreign policy. Most importantly, Beijing has to seek a relatively stable relationship with the United States so it can focus its attention at home. The recent summit between Xi and President Joseph Biden in San Francisco is a key step in this

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A lot happens every day. Alliances shift, leaders change, and conflicts erupt. With In Brief, we’ll help you make sense of it all. Each week, experts will dig deep into a single issue happening in the world to help you better understand it.***In the past few years, China’s economy has been struggling. Even since the Chinese Communist Party rolled back pandemic-era restrictions last year, consumer spending has stalled and economic growth slowed — the International Monetary Fund is predicting 4.6 percent growth in China next year, down from 5.4 this year. We asked four experts to tell us about China’s

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