While Chinese policymakers attempt to boost economic growth through aggressive exports, analysts and foreign investors are concerned about the economic consequences of China’s surplus industrial capacity and weakening domestic demand. China’s economic fundamentals are still weak, they argue, and while many investors sit on the sidelines and continue to be underweight on China, Sino-U.S. geopolitical tensions is China’s biggest external risk in a U.S. election year, they add. And, the property market woes are still the major domestic risks.
“As China tries to export its way back to strong economic growth, foreign companies are struggling to gain traction in China due to a slump in consumer confidence as the country grapples with a slowing economy, a stagnant property market, and high youth unemployment, all of which are limiting discretionary spending,” Michael Ashley Schulman, chief investment officer at California-based Running Point Capital, told The Epoch Times.
