China’s economy has lost momentum after a surprisingly strong start to the year.

• But while many analysts are asking why Beijing isn’t doing more to stimulate growth, this week’s Trivium China Podcast explores a different question: why are policymakers deliberately choosing not to?

Pod host Andrew Polk is joined by Trivium’s Head of Markets Research Dinny McMahon to examine why Beijing may be quietly embarking on its first genuine economy-wide deleveraging effort in years, and what that could mean for China’s growth model.

The two discuss:

• Why recent weakness in investment, consumption, and the property sector won’t trigger a major stimulus package
• Whether Beijing’s annual fiscal "stimulus" has become more theater than meaningful economic support
• How slowing credit growth could signal a deliberate shift in macroeconomic strategy
• Why strong exports and rising inflation may have created a rare opportunity to reduce leverage
• Why policymakers appear to be prioritizing future borrowing capacity over stronger short-term growth

Andrew and Dinny also explore what slower credit growth means for businesses and investors and how Beijing's evolving priorities could complicate trade negotiations with Europe and other major trade partners.