Commentary
China continues to suffer economic setbacks. The latest came with news that housing sales in July plunged almost 30 percent from June. Optimists had taken heart when housing sales had picked up in May and June in response to eased COVID-19 lockdowns, but the most recent news has dashed hopes for an easy recovery. Since housing amounts to some 30 percent of China’s gross domestic product (GDP), this news raises questions about the economy’s ability to meet the government’s target of 5.5. percent for real growth in 2022, or show much growth at all for that matter. It should be abundantly clear now—even to party leadership—that this crisis is serious and requires concerted action from Beijing. Yet, the Politburo, China’s top policy-making body, shows no inclination to act. This matter will not go away until it does….