The real problem with China's economy | Mint

Chinas vast economy is currently dealing with a crisis of trust worsened by a lack of information available, to the public and investors alike amidst a property downturn and a slowdown in the services sector in August that has left consumers frustrated and multinational companies withdrawing funds rapidly from the country while foreign analysts are revisiting their economic growth projections, for China downwards.

The darkness mirrors issues ranging from constructions, to unpaid debts and also mirrors a rising lack of trust in reports concerning Chinas status quo. There is belief that the authorities manipulate data and conceal information while occasionally suggesting unrealistic solutions, for economic challenges. This vacuum perpetuates itself. As the economy becomes more vulnerable and information is further suppressed. Tension escalates. It is not solely a matter of wavering confidence; it extends beyond that. By reversing course on the strategy of opening up the flow of information over time China may encounter increased challenges, in achieving its goal of reshaping the economy around emerging industries. Similar to the Soviet Unions experience there is a risk of China showcasing that authoritarian governance is not lacking in liberalism but ineffective, in practice.