As China celebrates 75th Founding Day, its economy continues to struggle for economic recovery

Xu Tianchen, senior economist at the Economist Intelligence Unit, said “the rare and simultaneous deployment of so many measures has highlighted the urgency for policymakers to support the economy.”
Furthermore, economists say it will take much more work to reverse China's economic slowdown. “Boosting the stock market doesn't do much for the real economy in China. Very few people invest in the stock market compared to other major markets,” said Logan Wright, director of China market research at Rhodium Group.
Chinese households have suffered significant wealth losses due to a housing market slump totaling about $18 trillion, CNN reported citing economists at British multinational universal bank Barclay in a research note earlier this month . “It’s as if every three-person household in China lost about $60,000, an amount that is equivalent to nearly five times China’s per capita gross domestic product.”
In his statement, Logan Wright said “the stimulus package” makes it appear that leaders are more responsive, more responsive to the slowing economy. And that's what generated some of the most positive sentiment last week. But nothing really changes in terms of structural outlook.”
China's decades-long investment-led growth is at a “dead end” and fundamental reforms to its tax system – including income redistribution and greater transfers to households – are needed to rebalance the economy towards a more sustainable economy, driven by consumption. growth model, Wright said. (ANI)