MERICS Members Event: Can China’s leadership prop up economic growth?
China entered 2022 with a wide range of economic challenges. Predictable hurdles like lagging consumption growth and concerns about the real estate sector have collided headlong with Omicron outbreaks that have locked down Shenzhen, Shanghai, and even entire provinces like Jilin. Supply chains and foreign investors' confidence have been so rattled by lockdowns as companies are struggling to access inputs for production. Beijing’s wish for a more consumption driven economy continues to falter, and the reliance on exports to prop up growth is likely to diminish as inflation in export markets worsens.
With stability in employment and growth as the top priority for Beijing, many other policy goals are likely to be deprioritized in the coming months as state planners try to keep the bottom from falling out of a locked down economy. The implications for both China and the world could be significant moving forward, as everything will be on the table to prop up economic confidence in the lead up to Xi Jinping’s expected bid to hold on to power at the end of 2022.
Max J. Zenglein, Chief Economist at MERICS
Jacob Gunter, Senior Analyst at MERICS
Valarie Tan, Analyst at MERICS
Bernhard Bartsch, Director External Relations at MERICS
Please note that the meeting is confidential and by personal invitation only. This online event is part of our portfolio for MERICS Members and key stakeholders.
As a MERICS member, you can read our corresponding publication "Downward pressure on the economy rises amid growing uncertainty" here.