China’s economy is flashing many warning signs.
Weak spending is pushing China close to a dangerous trend known as deflation: Consumer prices are flat, and wholesale prices paid by companies are actually falling.
“It’s not a strong recovery; the economy is quite weak,” said Wang Dan, the chief economist at Hang Seng Bank China.
Some companies are also moving supply chains out of China, which will have a longer-lasting effect on exports, Mr. Fattal said.
But a huge accumulation of debt, particularly at the level of local governments, has made that hard to do.
Persons:
”, Diana Choyleva, “ It’s, Wang Dan, Richard Fattal, Fattal, Lou Jiwei, Cui Dongshu, Fu Linghui, Lou, Ms, Wang, Li You
Organizations:
Enodo, National Bureau, Statistics, Investment, Hang Seng Bank China, National Bureau of Statistics, Administration, Customs, Companies, Workers, China, China Passenger Car Association
Locations:
Shanghai, London, China, Baoding, United States, Europe