Economics
Why China Is Limping Into the Year of the Dragon
Beijing hasn’t hit on the right mix of policies to reawaken the animal spirits.
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As China heads into the lunar Year of the Dragon, traditionally seen as one of the most auspicious creatures on the zodiac, the country’s leaders are struggling to restore confidence at home and abroad.
The economy is besieged by deflation, a persistent housing market slump and a stock selloff. And Beijing’s piecemeal stimulus policies—such as lowering bank reserve requirements to encourage more lending and issuing more government bonds to fund construction projects—don’t seem to be improving sentiment.