Commentary The latest news out of China shows an economy in decline. Crucial August measures of both industry and services confirm the fact. No doubt, much in the setback reflects the early summer rise in COVID-19 infections and the subsequent lockdowns imposed by Beijing’s “zero-tolerance” policies. Now that infections seem to be abating, strictures will soon ease, and at least modest growth will likely return. Nonetheless, this recent pause should prompt businesspeople, policymakers, and observers to consider an array of more fundamental growth impediments facing China’s economy. Some of the most sensitive measures of economic activity—in China as well as other countries—are periodic surveys of business purchasing managers. Two such measures suggest that the Chinese economy had a bad August. Even the ever-optimistic official government figures show damage. Beijing’s so-called purchasing managers’ index (PMI) for manufacturers fell 0.6 percent from July and at present stands 3.5 percent below levels at …