China’s Reforms on the Edge of the Economic Abyss
Last month, China’s government introduced the most comprehensive reform to its company law since the changes implemented after its accession to the World Trade Organisation in 2001. The new rules are adding yet another layer of complexity for Chinese companies already struggling with overcapacity and a slowing domestic economy. Meanwhile, China’s leaders are betting that these reforms will make business less volatile and easier for the Communist Party to control.
The looming question is whether China can navigate its profound economic challenges through tighter controls on business amid growing geopolitical tensions with the US, dependency on EU markets, and its controversial cooperation with Russia, all while grappling with demographic reversals and a declining inflow of investments into the country.
#china #economy #reforms
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