Chinese economy declines given Coronavirus and housing sector crisis -

Beijing: The outbreaks of Coronavirus pandemic, the crisis in the housing sector and the heat wave have resulted in a major decline in the Chinese economy. The Chinese economy could register a growth rate of a meagre 0.4% in the April-June quarter. This is the lowest since 2020. International analysts have raised doubts about the new Chinese GDP report. Experts claimed that, in reality, the Chinese economy has slowed down.

There have been consistent Coronavirus outbreaks in China over the last few months. The Chinese communist party harshly implemented the Zero COVID policy to stop these outbreaks. This directly impacted the Chinese manufacturing sector, known as the ‘Factory of the World’. The global supply chain based on this sector also had been disrupted. Large foreign companies upset with the Chinese policies either postponed or suspended their orders.

Along with the manufacturing sector, a series of crises have developed in the housing and property sectors, forming a major share of the Chinese GDP. Last year, it was exposed that leading Chinese company Everland failed to repay foreign loans. The repercussions were felt even in other companies and the crisis started in the Chinese housing and property sector. Discontent is intensifying even in the customers of the companies, along with the banks and aggressive protests have been triggered. Buyers from more than 80 cities have refused to pay instalments to the companies. The extent of the campaign and the Communist regime will also have to take cognisance of the matter.

Moreover, housing sales have been declining consistently for the last ten months, which has delivered a major jolt to the economy. Meanwhile, the heat wave in China and incessant rains had brought activities in the major cities to a grounding halt. The new statistic shows that this also has impacted the economy. Analysts have predicted that if this decline in the Chinese economy continues, it will not be possible to attain the projected growth rate of 5.5%

Meanwhile, some analysts claim that China’s growth of 0.4% is fake. Some analysts have inferred that the Chinese economy must be in recession, given the crisis in various sectors and the halting of transactions, due to the restrictions imposed under the Zero COVIS policy.