China's economic woes are deep, prominent economist argues

One of China's leading economists is refuting the popular theory that the country's slowdown is K-shaped—with thriving sectors like electric vehicles and artificial intelligence offsetting weakness elsewhere. Per Semafor, Tsinghua University's Li Daokui argues the reality is a broad, three-year cooling. He pegs the real unemployment rate at ten point two percent—double the official figure—and says the recent investment decline is unprecedented. With both producer and consumer inflation falling, he identifies weak domestic demand—only partially offset by strong exports—as the core problem. Li is calling for a massive central government bailout of local governments, which are drowning in debt from past infrastructure spending.

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