🇨🇳China’s Struggling Rich Cities Are Threatening the Entire Economy [long read] Bloomberg reports that fiscal hardship gripping poorer provinces is spilling into wealthy regions long considered slowdown-proof. 📊 The fiscal austerity that’s gripped poorer parts of China since the pandemic is now spilling into provinces that long seemed slowdown-proof, threatening the Communist Party’s ability to propel its $18 trillion economy. Preserving that earning power was given fresh urgency by the election victory of Donald Trump, who has pledged to choke off critical Chinese exports. 📉Troubles plaguing China’s wealth belt accentuate the scars of an unprecedented property downturn and go some way toward explaining the government’s recent embrace of stimulus. Determining whether the debt swap program can succeed in rescuing rich provinces will likely take months, if not years. 📊It hardly matters where regions once stood in the economic pecking order. In a worrying sign, the southern powerhouse of Guangdong in the first 9 months of the year clocked its weakest expansion since the pandemic. The housing crash that’s made developers reluctant to purchase land choked off a key source of income, just as local governments collected less tax from struggling companies. A debt pile-up also made interest payments a growing burden. Read full: ⬇️⬇️⬇️ en review.uz/en/au8 ru review.uz/au8 More analytics ⬇️⬇️⬇️ © Экономическое обозрение © Иқтисодий шарҳ © Economic Review telegram | facebook | twitter|linkedin