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Chinese experts sound alarm over the economy

Jul 8, 2025, 6:31am EDT
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A customer shops for tomatoes at the vegetable section of a supermarket in Beijing, China.
Florence Lo/File Photo/Reuters

Prominent Chinese experts sounded the alarm over the serious threats facing the world’s second-biggest economy.

Beijing’s trade war with Washington has dominated attention, and Chinese officials previously downplayed the myriad long-term risks to growth, making the latest warnings notable.

A leading Communist Party journal recently cautioned against “overcapacity” — a term Beijing once fiercely contested — while an influential economic adviser joined a growing number of voices saying China must guard against involution, or economically destructive price wars.

Meanwhile Caixin, the highly regarded business magazine, reported that China’s debt-laden property developers are imposing steep haircuts on creditors to avert bankruptcy, creating “a perilous new chapter” in the country’s real estate crisis.

A chart showing the annual inflation rates for the G7, world, and China
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