In a commentary, SMU PhD student Henry Chan wrote about the various economic challenges faced by China today. These include China’s exports declining more than expected, its real estate market reaching saturation, and its newly-drafted budget law’s immediate repercussions being worse than expected, despite their long-term benefits to fiscal health and management of the central and local governments. Other factors include the reduced demand for China’s manufacturing as global trade declines, as well as the fall in the supply of major international commodities such as oil, which has been causing deflationary pressures on economies worldwide. Chan noted that as these challenges are both structural and cyclical, China has to re-evaluate the repercussions of over-investment and restructuring on traditional industries and the real estate market, which is China’s main economic pillar.