- China’s regulatory crackdown is already hurting the economy
- crippling economic stance, demand, and private investment in the economy face the most threat
- Beijing wants to reduce carbon, curb property speculation
- infrastructure investment has slumped on slower borrowing
China’s campaign to clamp down on industries ranging from steel to education to property has roiled financial markets and curbed the outlook for growth in the world’s second-largest economy says an article on Bloomberg.
Decarbonization push
China has set an ambitious goal of becoming carbon-neutral by 2060, a challenging target is given it hasn’t even reached its emissions peak. In its first road map to achieving net-zero emissions, Beijing pledged to increase the use of renewable energy and develop new technology to capture emissions, as well as to reduce emissions per unit of GDP.
Property curbs
China has been increasing restrictions on the nation’s runaway property market with measures including rising mortgage rates, temporarily halting land auctions in some major cities, and banning private equity funds from raising money to invest in residential developments.
Edu-tech overhaul
China launched a sweeping overhaul of the $100 billion education technology sector, with companies that teach the school curriculum now banned from making profits, raising capital, or going public.
Slower borrowing
Local governments have been slow in selling special bonds this year, partly due to a lack of good projects and stricter project reviews. The slow pace of borrowing means the economy will receive less of a boost this year from infrastructure investment than initially thought.
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Source: Bloomberg
