Another Sign China's Economy Is in Deep Trouble

Emily Jin, a research associate at the Center for a New American Security think tank, told Newsweek China's real estate market slump and falling consumer spending—already major headwinds for the Chinese economic engine—were further exacerbated by the pandemic and the stringent measures the Chinese government rolled out in response.

President Xi Jinping of China increasingly favors a "top-down approach to control finance and shift of resources from real estate to strategic sectors."

The statist approach is widely seen as getting in the way of growth, she pointed out.

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