Chinese leaders have rolled out a slew of new rules for much of 2021 aimed at addressing long-standing imbalances in the economy.This year, the Chinese government wants to make sure the ripple effects of these moves don’t cause too much disruption.
After months of sweeping moves aimed at reforming the economic model, stability has become the economy’s top priority.Economists say the old economic model relied too much on growth from housing construction and government-led infrastructure investment.Strict new limits on how much developers can borrow has triggered a housing downturn, with developers halting bids for new land and buyers delaying their purchases.At the same time, government moves to rein in and restrain private companies ranging from tech giants to for-profit education and training services have spooked investors at home and abroad.The government has also imposed stricter cybersecurity regulations that could hamper the Chinese tech giant’s plans to go public overseas.