The End of Chinese Growth

Article excerpt

China's economy is slowing dramatically as the country grapples with a shrinking working-age population, collapsing consumer spending, and a real estate sector in freefall. The nation that averaged 10 percent annual growth for three decades now struggles to reach 5 percent, forcing Xi Jinping's government to confront structural problems that stimulus spending cannot fix. Demographic headwinds, a result of decades of low birth rates, mean fewer workers supporting more retirees, while Chinese households have pulled back sharply on consumption, preferring to save amid economic uncertainty. The shift undermines Beijing's long-term development strategy and raises questions about whether China can sustain the investments needed to compete technologically with the West.