Challenges remain for China to rebalance its economy, Michael Pettis notes

Challenges remain for China to rebalance its economy, Michael Pettis notes
China faces urgent economic rebalancing

Michael Pettis, economist and professor of finance at Peking University and nonresident senior fellow at Carnegie Endowment for International Peace, discusses Rhodium's analysis of the Chinese economy.

He highlights that there is broad consensus among economic policy advisors about the urgent need for China to rebalance its economy, though some policymakers may not yet share this view.

Pettis previously highlighted concerns about hidden bad debt in China's banking sector following the Huaxia Bank case. He also noted that China's industrial profit recovery has been uneven, with some consumer and property-linked sectors facing margin pressure and requiring targeted support, according to a recent analysis. These observations reflect ongoing challenges across different segments of the Chinese economy.

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