China’s Push to Tame Debt Starts to Sting Economy

Wall Street Journal , Jun 14, 2018
by Liyan Qi, Grace Zhu, and James T. Areddy

BEIJING—China’s economy is starting to feel pain from Beijing’s monthslong effort to curb debt, with business activity slowing and the central bank deciding to not follow the U.S. Federal Reserve in adjusting interest rates.

Across the board, business activity from investment to retail sales slowed in May, official data released Thursday showed, suggesting that the world’s second-largest economy is facing growing headwinds.

Meanwhile, the People’s Bank of China left a suite of key short-term interest rates unchanged, forgoing a tactic used previously after the Federal Reserve raised interest rates, as it did Wednesday for the second time in 2018.

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