Part 5/9:
Shifting focus to the economy, we see troubling trends in China's financial sector. In 2024, new loans issued by Chinese banks dropped for the first time in 13 years, reflecting a shortfall in demand for financing amidst issues like deflation and a struggling housing market. The People's Bank of China reported that new loans fell to 18.9 trillion yuan (approximately $2.47 trillion), marking a decline from the previous year, while aggregate financing increased at the slowest pace since 2021.