In China, the Economic Buzzword for 2022 Is Stability
HONG KONG—China’s leaders spent much of 2021 rolling out a blizzard of new regulations aimed at addressing long-running imbalances in the economy. This year, Beijing wants to ensure the ripple effects of those moves don’t cause too much disruption.
Stability has become the top economic priority after months of dramatic actions aimed at revamping an economic model that economists say relied too much on growth from housing construction and government-led investments in infrastructure projects. Strict new limits were imposed on how much property developers could borrow, setting off a slump in the housing market, as developers stopped bidding for new land, and home buyers delayed purchases. Meanwhile, government efforts to rein in and discipline private-sector firms—from tech giants to for-profit tutoring services—spooked investors at home and abroad. Beijing also imposed tighter cybersecurity regulations that could snarl Chinese tech giants’ overseas listing plans.
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