China’s development model is unraveling before our eyes

News Snapshot:

There’s no denying that China’s economy is struggling. After the zero COVID-19 policy was lifted at the start of this year, investors were upbeat about the prospects for a strong rebound. However, China’s economy has fallen well short of expectations. Real GDP growth slowed considerably in the second quarter, as exports declined and households accumulated savings to protect against an ongoing slump in property values. Data for July point to ongoing weakness this quarter, including exports that plummeted by 14.5 percent, the steepest decline since the onset of the pandemic, and emerging signs of deflation. Meanwhile, China’s stock market has...