Published on February 5, 2024, 12:57 am

In the midst of an alarming real estate bubble burst, China’s economic growth is slowing down significantly. Historically, communist countries like China have typically addressed such issues by infusing more funds into the predicament. However, it’s clear that this approach isn’t effectively mitigating the current crisis.

On Friday, despite numerous attempts to bolster the struggling property sector, Chi­na’s markets continued to tumble. The International Monetary Fund (IMF) has predicted that China’s economy will persist its sluggish performance for several coming years. In their latest report, they indicated a shrink in economic growth from 5.2% in 2023 to a mere 4.6% annual rate this year and projected even lower levels – only tasting 3.4% by 2028.

The crash in China’s housing market is severe; new constructions have dropped by over 60% since before the pandemic ensued due to curbs on excessive borrowing initiated in 2020.This pace matches precisely “the largest housing busts in cross-country experience in the last three decades,” according to the IMF report.

The leading victims of this downturn have been Shanghai’s main composite index that suffered a steep fall of 1.5%, recording its worst week in half a decade, and Shenzhen market which dwindled by an alarming 3%.

These developments follow the ordered liquidation of one of China’s largest real estate developers underlining the scale of distress in its property sector – an area accounting for nearly a third of its total economic activity.The situation is directly impacting investor confidence and consumer belief.

Apart from these imminent challenges, China’s demographic complications pose another threat. Their long-standing One Child policy has led to an unnatural gender imbalance with insufficient women for men who are now within marriageable age.This has resulted in low birth rates and stress on their social system.

Simultaneously,struggles within their real estate market aren’t the only concerns China is grappling with. Some critical reports hint towards additional economic issues the country is faced with.

Despite all these growing concerns, it appears that the Chinese government’s focus lies in other non-critical matters rather than addressing this crisis head on. While communism deserves a significant share of the blame for such situations, demographic and social unrest can instigate even larger problems.

Suffering from a similar arrogance shown by France’s Bourbons, the Chinese Communist Party (CCP) seems to disregard its responsibility of improving the standard of living for their citizens.In fact, urban households continue to survive at barely above subsistence level income.

So, with an unstable economy, increasing expansionist pursuits and social tension resurfacing because of frustrated young men, China’s future looks precarious. It remains uncertain if there will be peaceful resolutions to these problems – for now; it seems like an uphill battle. In conclusion, understanding these predicaments from a Christian Worldview helps us acknowledge there needs to be more than just reliable news source but also trusted news reporting that uncovers truth.