Xi Jinping’s Economic Plan: Let China Struggle | The Big Take

China’s economic slowdown is catching the attention of countries around the world as they brace for a possible hit to their own economies. Bloomberg’s Rebecca Choong Wilkins and Tom Hancock discuss why President Xi Jinping is avoiding a big stimulus package and instead allowing China’s economy to run “cold”—and how long it may take to turn things around.

Each weekday, The Big Take brings you one story—one big, important story. Host Wes Kosova talks to Bloomberg journalists around the world, experts and the people at the center of the news to help you understand what’s happening, what it means and why it matters. Money, politics, the economy and business, energy, the environment, technology—we cover it all on The Big Take.

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[scenemuch]

The state can save trillions and count on the mortgage holders to provide stimulus.

[charlesballiet]

china homebuyers learning from gamers pain "never preorder before delivery"

[mystictraveler]

Should this guy be worrying about his own country? I mean why are they so obsessed with China? Fix your country dude. Your people are hurting.

[zhenwenlu]

China's government are not up for re-election every few years. So they are not under the same kind of pressure that Western governments are under, seeking short term measures to prop up the economy to get re-elected. So the West has always taken short term economic measures and often resort to money printing as a quick fix. Chinese politicians therefore has a preference for long term reforms that might bring short term pain but in the long run will strengthen the country's competitiveness.

[ambition]

0:00: 📉 China's economy is facing challenges as it slows down, property market declines, and exports decrease.
4:51: 📉 Chinese exports are declining due to a decrease in demand from Europe and the US, impacting a third of the economy.
8:45: 📉 China's economy is slowing down due to the government's deliberate efforts to reduce debt and shift away from a growth model fueled by debt.
13:15: 🏢 Chinese homeowners were paying mortgages on properties that had not yet been delivered, leading to sporadic protests and concerns about the property market's impact on wealth.
17:48: 📉 China's weak domestic demands and labor market contrast with the US's tight labor market and record low unemployment, as both countries try not to repeat past mistakes.
21:41: 😔 China's economy is facing challenges with a shrinking property sector and increasing tensions with the US.
26:37: 🏢 The Chinese property market is experiencing a decline in sales, but there is still demand due to economic growth and urbanization.
Recap by Tammy AI

[ShusenWang]

I was an engineering manager of an internet company in China. Back in 2021, recruiting was so difficult that I spent much time persuading graduate students to take our offers. The game changes since 2022. Students are struggling to get an offer.

[SaurabhSharma]

21% youth unemployment stat is outdated. They actually stopped releasing the updates.

[DD-srxm]

Historically planned economies always fail. The primary reason is policy makers can’t accept the pain of a downturn and double down on problems until the full collapse comes. Xi seems to accept this downturn and wants to use it to correct wealth distribution distortions. His motivations are less economic than sociological but it represents a divergence from the usual response in planned economies. At the very least the Deng/Zhu pathway towards a market driven economy has given way to a new Xi pathway of controlled economic development subjugated to ideological political objectives.

[benjaminmatheny]

Really disappointed to see you have people talking blatant lies and not calling them on it. "China's domestic market is just fine, growing even". When shops everywhere stand empty, unemployment continues to climb, and the local governments are either cutting wages or not paying them at all. So much for journalism.

[syedadeelhussain]

All economies slow down as they reach the limits on the PPF Curve. That is basic microeconomics which helps us to understand Macroeconomics. The tradeoff between capital and consumer goods becomes exhausted as capital deepening will only substitute labour - L with capital - K
Hence, that might lead to a long-term negative accelerator effect.
The model of growth and development must undergo metamorphosis.

[rc....]

Simple, because that isn't his goal and his goal does not depend on the Chinese economy doing well.

[bhavanarajesh]

Somebody elaborate how is it a 18 Trillion economy, seems more like a 5-8 Trillion economy.
Secondly many guess they are broke otherwise they would have rescued the real estate from crashing.

[peterutomo]

Some western countries are mad at China for not stimulating their economy in time of economic downturn. We are hoping that they will soon open the stimulus cheques, like typical Western response, so economy around the world can also benefit and get a boost from China. Alas, this has not come true, or so to what we have been hoping for.

[yoshyoka]

Somehow the numbers just don't add up. Real estate, about 30% of GDP is stagnating, exports, about 20% od GDP are down by double digits, unemployment is high, local prices are staganting and spending is not high... Where should the compensation to get to 5% growth come from? It is either imaginary accounting or massive debt creation in new white elephants infrastructure. I simply cannot believe that services can grow that much to compensate. I have to quote Likeqiang here: China's GDP figures are man made an unreliable.

[stevenlevernier]

If people are comfortable they don't want to go to war.

[jckbquck]

This is by far the cutest, softest, gentlest interpretation of all that's been happening in China in terms of its economy! The facts shared in this podcast are exactly the same as those shared on numerous other media sources; it's just the interpretation / analyses here is so much gentler, softer, cuter. LOL!

[eunidapieters]

The entire globe is heading for a massive dive ....heads first, concerning China...well, I'm sitting on a chair made in China, typing on a phone made in China, drinking from a mug...made in China, o yes even the pajamas, bath robe, and slippers were made in China😂 So please, unless anyone here have rock solid proof, that they producing all these products I just mentioned... I'll worry about the Booming Chinese economy.

[Papamorely]

Please remember, chinas demographics peaked in 2017 and their own government admitted to over counting its population by as much as 100 million people. This was always going to be a short term buildout to defeat the enemy in the Cold War . We knew this would collapse 30 years ago when one child policy was never repealed in a timely manner . As much as I care for the Chinese people, their society is facing a potentially catastrophic collapse

[smdanny]

The way of the emperor：keep the people poor, keep the people uneducated, keep the people struggling

[msj]

Is anyone going to comment on the massive floods that have devastated China? Seems like people in the west have largely ignored it's affect