China Is Running Out of Options as Its Economic Crisis Deepens

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China appears to be running out of easy economic options.

The world’s second-largest economy needs more stimulus as consumer spending remains weak, investment falls, the property crisis continues and demand for new loans slows. Yet China has kept its benchmark lending rates unchanged for the 16th consecutive month.

In this video, I examine why Beijing is reluctant to cut rates, how higher US interest rates are restricting China’s choices and why another debt-funded stimulus programme could worsen the problems facing property developers and local governments.

I also look at the extraordinary warning from a Chinese central-bank adviser that artificial intelligence could deepen the imbalance between China’s enormous industrial output and its weak domestic demand.

Can China rely on exports without provoking even more tariffs—and what would a prolonged Chinese slowdown mean for the United States, Europe and the global economy?