Two indicators shake up China’s economy: Planet Money: NPR

JADE GAO/AFP via Getty Images

JADE GAO/AFP via Getty Images

Chinese leader Xi Jinping recently won a third term as president. In his re-election speech, Xi talked about China’s future development and the challenges it will face.

So today, we’re taking a look at the world’s second-largest economic power. We’ll examine two major transformations in the country’s economy – one coming from within China and one from outside.

The first shift: China has experienced a remarkable real estate boom over the past few decades, to the point where Chinese real estate has effectively become the world’s largest asset class. But in recent years, the market has begun to show signs of collapse. The Chinese government is doing its best to slowly deflate the financial bubble that has built up over the years, but Chinese homebuyers are becoming increasingly frustrated.

Second shift: The United States recently blocked China’s access to advanced semiconductor chips. Let’s look at what this means for the Chinese tech industry and the trade relationship between the two countries.

music: “8 codes“”Cool little penguin,” and”Snow Puppy Soul“”.

Subscribe to Planet Money+ to help support Planet Money and get bonus episodes In Apple Podcasts or plus.npr.org/planetmoney.

These links are always free: Apple Podcasts, Spotify, Google Podcasts, NPR One Or wherever you get your podcasts.

Find more Planet Money: twitter / Facebook / Instagram / Tik Tok / Our Weekly communication.