Yan Chungou argues China’s slowdown is political rather than financial, saying more borrowing would not reverse an economy he describes as sluggish for three straight years.
Li Daokui’s July 12 call for Beijing to roughly double planned 2026 government debt rested on signs including a 10.2% unemployment rate, negative fixed-asset investment growth and mounting local-government debt.
Yan says that debt buildup is a symptom, not the cause: local governments borrowed heavily through property and infrastructure projects, while Beijing has largely resisted broad bailouts and expects them to handle their own liabilities.
He traces the deeper decline to a long shift away from market-oriented reform toward stronger state control under Xi Jinping, which he says weakened private investment, hurt confidence and strained ties with Western democracies.
Yan concludes Beijing is prioritizing political stability, security and surveillance over growth, leaving leaders trapped between preserving one-party control and restoring economic vitality.