China’s current economic situation is unique compared to past crises in other countries. Despite impressive growth in the last four decades, the country is facing a “recessionary growth” issue rather than a full-blown crisis. The main problem is a chronic lack of demand, even as the economy continues to grow. This is evident in the consumer price index, which is on the verge of deflation with stagnant prices, and the high youth unemployment rate of 21.3%. In simple terms, China is experiencing a situation where spending isn’t keeping up with available resources.
