Skip to Content

China’s economy slows as Beijing wrestles with debt

KTVZ

By JOE McDONALD
AP Business Writer

BEIJING (AP) — China’s economic rebound from the coronavirus pandemic is stalling as President Xi Jinping’s government cracks down on surging corporate debt. For a decade, the ruling Communist Party has talked about shifting to an economy based on spending by 1.4 billion consumers instead of on building factories and apartments. But with each slowdown, Beijing fell back on pepping up growth with more construction and borrowing. Finally, Xi’s government is confronting the problem by clamping down on borrowing by a real estate industry that supports millions of jobs. That is sending shockwaves through the economy, slowing construction and housing sales and chilling auto and retail sales. Weaker Chinese demand can ripple through many industries, hurting worldwide growth.  

Article Topic Follows: AP National News

Jump to comments ↓

Associated Press

BE PART OF THE CONVERSATION

KTVZ NewsChannel 21 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content