China's Economic Crackdown Backfires as Domestic Demand Plummets
China's recent Central Economic Work Conference suggests a hint of remorse over its overzealous crackdown on private enterprise and implementation of growth-negative policies. The conference's official readout emphasizes the need to prioritize economic development and establish new plans before addressing existing issues. This marks a shift in approach and indicates a more cautious stance on implementing new policies that could destabilize markets. However, China remains committed to its economic objectives of higher quality growth, increased security, and innovation. Market watchers are disappointed by the lack of announced stimulus to boost consumption, and while some predict a potential economic acceleration in the first quarter of 2024, others believe it may be insufficient.