China's economy slows as Beijing wrestles with debt

good. Hope their economy collapses

There is a possibility of contagion within China if not mitigated by CCP/CB intervention. The effects could spread offshore to the extent finance issues or energy shortages disrupts trade.

Fortunately for China, the government has the tools to strictly regulate banking and is willing to do so. Unlike the West in 2008.

China lied again!!! If that is the case why is China having another Covid out break, when they told the world over they have the China virus under control. This statement is false, except for the very end where it says china's rebound quickly flattened out!!! THe virus never left! "China revived from the coronavirus pandemic earlier than the United States, Europe or Japan, but that rebound quickly flattened out. Greed will be China's doom!

The evil empire expanding more than it can handle will collapse under its own weight.

China’s economic rebound from the coronavirus pandemic is stalling as President Xi Jinping’s government cracks down on surging corporate debt.

In a “free enterprise,” or even quasi-free enterprise, the government, by design, can’t “control” private companies or their debt. Even in socialist countries there are always elements of free enterprise in operation. They can affect how easy or difficult to access money but that is hardly "cracking down."

Firms can’t force people to buy their bonds. Whether they are American or Chinese, firms have to make the bond enticing. If a bond provides either a high interest rate or a safe place to park cash, then people will buy it.

Really hope it doesn't drag Japan with it.

It's just a bounce.

With something on the order of 30-40 million unoccupied housing units and a population heading for long term decline, it is the opposite of a bounce. Demand for housing is not sufficient to fill those empty homes and will not return in the foreseeable future. If anything demand will decline further. The 15% or so of the Chinese GDP represented by the home building industry is probably mostly gone with no prospect of a rebound.

Ironically for a dictatorship, parts of the Chinese economy were very poorly regulated for a long time, hence all the toxic debt. One inherent problem with such regimes is that they lack genuine ability in key areas, not just in Beijing but in local government across the country. Clever people are usually perceived as dangerous. There are consequences to that.

A soft landing from the debt problem would be difficult but not impossible. But, throw in the new drive for Communist purity, the gutting of multiple sectors and the insane Covid Zero approach, combined with inevitable, long-term isolation, and there is a real likelihood that the Chinese economy could fracture and go into a tail-spin.

An economy can only take so many hits before it collapses. Whilst some economies will re-emerge, living with Covid, some will find it difficult. The UK will suffer continued damage courtesy of Brexit as EU economies reboot. The economic map is going to change. China, remarkably, now looks vulnerable. It will not be as big a splash as it would have been ten years ago, as many supply chains have migrated to other nations, but it won't be pretty.

Welcome to reality China. What you want? A cookie?

One inherent problem with such regimes is that they lack genuine ability in key areas, not just in Beijing but in local government across the country. Clever people are usually perceived as dangerous. There are consequences to that.

China really needs to become a federal republic but that would require a free press and competitive elections to keep everyone more or less honest. Deng led the way to decentralization of the Chinese economy, granting regional and municipal authorities great latitude to experiment and innovate without being too tied down to party orthodoxy. China's economy exploded. Now Baby Ping Ping has forced everyone, both private business people and all the different levels of regional and local government, to look to Beijing for guidance, and approval of everything they do. The free wheeling days of experimenting and taking risks are gone and with this gone to are the entrepreneurship and local innovation that grew China so spectacularly. Worse yet a lot of Chinese corporations and business leaders, many of whom are party members, are going to lose fortunes in the coming years.