China’s Private Sector: Anxiety to Panic in Seven Months, Economist Says

The China economy—especially its private sector—is facing unprecedented pressures, according to a renowned Chinese economist.

An employee monitors a circular weaving machine at a textile factory in Shangqiu City, Henan Province, China, on Sept. 8, 2018. STR/AFP/Getty Images

“China’s non-state-owned firms are facing their most difficult situation in the past 40 years,” says Chen Shouhong, an economist in Hong Kong and China.

With recent reports of the Chinese regime increasing state interference in the private sector—from state officials to widely circulated essays hinting at more central planning—Chinese leader Xi Jinping sought to reassure private businesses on Sept. 27, while on an inspection tour of northeastern China.