Despite the cloudy outlook for the Chinese economy, the administration of President Xi Jinping has been slow to act. The government should quickly introduce policies that tap into the vitality of the private sector and put the economy back on a growth trajectory.
A demand shortage caused by a property recession is weighing on the economy. Retail sales, which reflect consumption trends, fell 0.06% in November from the previous month, the first decline in four months. The real estate sector, which is said to account for 30% of gross domestic product if related industries are included, has performed poorly; sales of new homes by area in the January-November period fell 7.3% year on year.
