China’s economy slows as Beijing wrestles with debt

By JOE McDONALD
AP Business Writer

BEIJING (AP) — China’s economic rebound from the coronavirus pandemic is stalling as President Xi Jinping’s government cracks down on surging corporate debt. For a decade, the ruling Communist Party has talked about shifting to an economy based on spending by 1.4 billion consumers instead of on building factories and apartments. But with each slowdown, Beijing fell back on pepping up growth with more construction and borrowing. Finally, Xi’s government is confronting the problem by clamping down on borrowing by a real estate industry that supports millions of jobs. That is sending shockwaves through the economy, slowing construction and housing sales and chilling auto and retail sales. Weaker Chinese demand can ripple through many industries, hurting worldwide growth.