This Is How Xi Jinping Can Fix China's ‘Great Recession’
Beijing has been too busy with regulations. It’s time it stepped in and became a buyer of last resort.
Fixing the economy.
Photographer: Raul Ariano/BloombergAs it turns out, reopening alone is not enough to get China’s economy back on track. Only six months after the end of Covid Zero, manufacturing is already spluttering, one in five young people are jobless, and private businesses are not investing for the future.
There is a sense that the People’s Bank of China’s easing measures are no longer working. In a cover story last weekend, Caixin, an influential local news outlet, asked where all the central bank’s money went. M2, a broader measure of money supply, has been growing in double digits since the Shanghai lockdown more than a year ago. But there’s been little economic growth, and no inflation.