Temu’s woes are fresh signs of the doom loop headed for China’s economy

News Snapshot:

Chinese e-commerce giant Temu is the latest warning sign that the world's second largest economy could be headed for a doom loop caused by overproduction and Beijing's industrial planning. PDD Holdings, the parent company of Temu and Pinduoduo, stunned Wall Street on Monday with weak quarterly results and a warning that intense competition will dampen future earnings. Shares sank more than 30%, wiping out $50 billion in PDD's market value and ending founder Colin Huang's short-lived reign as China's richest man. In an analysis written before the earnings report, a top China scholar described an economic landscape that helped explain...