Why Xi Jinping is staring into an economic abyss

Aug 27, 2024 | 10 min read

In Xi Jinping's strategy for securing China's rise, the Communist Party keeps a firm grip on the economy, steering it out of an old era dependent on real estate. To tackle inequality, monopolies, and debt, and to ensure that China dominates new technologies and is fortified against Western sanctions.

Anatomy of an economic transformation

Parts one and two explored the background to Xi Jinping's transformation of the Chinese economy and how Beijing is rewriting the rules of doing business.

Debt

Debt-to-GDP ratio hit a record 360% from just over 200% a decade ago when Xi took over. Worsening local fiscal financing must be a matter of great frustration for Xi.