Xi Overcapacity Fight Leaves Economy Vulnerable Without Stimulus
The article discusses the economic challenges faced by China under President Xi Jinping's leadership. It highlights the president's efforts to address the issue of overcapacity in the Chinese economy, which he tackled a decade ago by implementing a $900 billion housing investment boom. However, the article suggests that this approach has left the economy vulnerable, as it has not been accompanied by adequate stimulus measures. The lack of such measures has made the economy more susceptible to deflationary pressures, which could pose a significant threat to China's economic stability. The article suggests that the Chinese government must find a balance between addressing the overcapacity problem and providing the necessary stimulus to support the economy's growth. This delicate balance will be crucial in ensuring the country's long-term economic well-being.
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