News Analysis The Chinese economy appears to be heading for one of the worst possible conditions: stagflation. And the Chinese Communist Party’s (CCP) poor policymaking is to blame. Manufacturing output is down, and China is plagued by fewer new orders for the next quarter, as well as power outages, food shortages, ongoing COVID-19 lockdowns, tighter border restrictions, a slowing real estate market, and massive debt. Stagflation, also known as recession-inflation, occurs when both inflation and unemployment are high, and economic growth is slow. It is a condition particularly difficult for governments to mitigate because expansionary polices, such as fiscal spending and lower interest rates, used to counter unemployment and a slowing economy would exacerbate inflation. Conversely, contractionary policies, such as increasing interest rates and curbing government spending and investment, would reduce inflation, but would also slow the economy, driving up unemployment. China’s National Bureau of Statistics (NBS) reported that it …