China’s growth rate of 5.3% in the first quarter of this year may have exceeded expectations, but the country’s leader, Xi Jinping, continues to struggle with overall economic management.
Many once thought it was only a matter of time before China’s economy would overtake that of the United States, but the post-pandemic slowdown has cast doubt on this trajectory. China faces a prolonged real estate recession, hidden local debt problems and low business and household confidence, as well as concerns about deflation and overcapacity.
It would be unfair to blame Xi’s government alone for these problems, as it has inherited a number of negative legacies from previous governments.
