China’s crazy censorship clampdown has failed to cover up the country’s economic turmoil.
No amount of spin can hide the colossal challenges facing President Xi Jinping’s regime.
“Many have traditionally looked to stocks and the property market as ways to grow their money amid rock-bottom savings rates – only to find their wealth shrinking,” it said.
And the bad news keeps coming:
- On Wednesday, manufacturing activity shrank for the fourth straight month in January.
- The official purchasing managers’ index or PMI came in at 49.2.
- It was below the 50-mark separating growth from contraction.
- And yet another sign that China’s manufacturing juggernaut is stalling.
Delve deeper: On Monday, Chinese real estate giant Evergrande went into liquidation after racking up at least $300 billion of debt. The crisis unfolded in 2021 and has since spread across the entire property sector.
Why this matters: China’s crumbling property market risks popping a debt bubble that has floated out of control for more than two decades.
What they are saying: “[Yet talking] about the problem could get people into trouble … [because of] the relationship between censorship and other forms of state control,” the newsletter reported.
China Factor comment: Matthew Henderson, an independent Asia expert, summed up the mood perfectly in the London-based Daily Telegraph when he warned that “public resentment and disaffection with the” ruling Communist Party “is on the rise.”