As China’s Economy Falters, Be Careful What You Wish For

It is becoming increasingly clear that China’s economy is facing significant headwinds. Most of this is Beijing’s own doing. A draconian zero-COVID-19 policy has locked down swaths of the economy, severely hit consumer spending, and curtailed factory output. Aggressive regulation of the technology sector, driven by Chinese President Xi Jinping’s retreat from private enterprise and embrace of Maoist socialism, has paralyzed a once-dynamic industry. A debt bubble in the country’s overinflated real estate sector has led to spectacular crashes, including the default of Evergrande, a gigantic property developer. Meanwhile, Russia’s invasion of Ukraine...