Investors are now questioning whether the world’s second-largest economy is headed for a long period of stagnation, similar to that experienced by the Japanese economy after 1991.
The first and most immediate concern is whether Beijing will be able to prevent the bursting of the country’s real estate bubble from morphing into
Beijing’s determination to pursue “high quality” growth has undoubtedly been reinforced by the Biden administration’s restrictions on technology transactions with China.Earlier this month, President Joe Biden banned new investment from the United States in key technology industries – such as advanced semiconductors and quantum computers – that could be used to enhance Beijing’s military capabilities.
At the same time, the problems in the country’s ailing property sector continue to fester. Country Garden, one of the country’s largest surviving private property developers, is on the verge of a possible default after missing bond payments this month. Indeed, most analysts agree that China is now paying the price for years of growth driven by unusually high levels of investment spending: public investment in infrastructure and public investment in real estate. And this investment spending was built on a mountain of debt.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bonds gain as investors spot value after pummellingThe latest moves hinted at demand for haven assets as concerns over China’s economy mount, with poor UK retail sales adding to the cautious tone.
Read more »
China to build 21 nuclear submarines by 2030Senior Labor ministers are demanding the urgent delivery of the AUKUS submarines to shore up Australia's defences amid rising tensions between China and the US. China is expected to have built 21 of its nuclear submarines and 200 major warships by 2030. Defence Industry Minister Pat Conroy is calling for the construction of new defence technologies to be expedited to help deter war in the Indo-Pacific.
Read more »
A new airstrip pops up on a disputed island. All eyes are on BeijingChina appears to be militarising another disputed South China Sea island that is also claimed by Vietnam and Taiwan.
Read more »
US, South Korea and Japan condemn China, agree to deepen military tiesUS President Joe Biden and the leaders of South Korea and Japan have made their strongest joint condemnation yet of “dangerous and aggressive behaviour” by China.
Read more »
US, South Korea and Japan condemn China, agree to deepen military tiesUS President Joe Biden and the leaders of South Korea and Japan have made their strongest joint condemnation yet of “dangerous and aggressive behaviour” by China.
Read more »
US, South Korea and Japan condemn China, agree to deepen military tiesUS President Joe Biden and the leaders of South Korea and Japan have made their strongest joint condemnation yet of “dangerous and aggressive behaviour” by China.
Read more »