Wealth Creation in China: The New Reality of 2022

This article is part of a Forbes article on who are the richest in China in 2022.See full list here.

China as a market remains vulnerable to further turmoil after the 20th National Congress of the Communist Party of China. Still, the world’s second-largest economy is expected to grow by 5% in 2023 and account for her 30% of global growth, according to the IMF. The Chinese government is emphasizing policies to keep prices and unemployment down. The youth unemployment rate hit nearly 20% for her in July, a record high and well above the national unemployment rate, which hovered around 4% last year. To strengthen the economy, state banks are encouraged to increase lending to the infrastructure, manufacturing and real estate sectors.

Rising tensions between the U.S. and China and an “unshakeable” zero-coronavirus policy are weighing on investor sentiment. Deteriorating relations with Western countries can have psychological and material effects on the country’s long-term economic performance. The yuan, which has depreciated more than 12% against the surging US dollar over the past year, is expected to weaken further and is on track for its weakest annual performance in almost 30 years.