Dusseldorf Since China opened up to the West in 1980, the Chinese economy has been growing year after year. Even the corona pandemic could not harm the second largest economy in the world – until now.
Because in the second quarter of 2022, the expansion of the Chinese economy almost came to a standstill. It increased by only 0.4 percent compared to the same period last year. Compared to the previous quarter, it even shrank by 2.6 percent.
That even beat the pessimistic forecasts of economists. And they – according to Lu Ting, China chief economist at the Japanese investment bank Nomura – still see “considerable growth risks” for the Chinese economy in the second half of the year.
One reason for this is certainly Beijing’s so-called zero-Covid policy, which paralyzed important economic centers in the country for weeks. And despite the economic crisis, President Xi Jinping apparently does not want to say goodbye to this strategy.
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Beijing correspondent Sabine Gusbeth reveals why in this episode of Handelsblatt Today. In an interview with host Tobias Gürtler, she reports which “unconventional measures” the Chinese government could now take – and why German companies also depend on the solutions of Chinese decision-makers.
Despite all the current stagnation, Beijing’s political leadership is still sticking to a growth target of around 5.5 percent for 2022. But is that still realistic? You can find out more about this in the current episode of Handelsblatt Today.
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