China's Weakening Economy


Over the last few decades, the Chinese economy has grown into an international powerhouse, with Xi Jinping leading China to huge international growth and helping it become the second largest economy in the world. With success from supporting companies such as Baidu and Ping Am, Chinese economy grew at tremendous rates over the last few decades, this growth is starting to stagnate. Economist Ravi Seth states that “exports unexpectedly fell 4.4% from a year earlier, with demand in most of its major markets weakening. Imports also saw a shock drop, falling 7.6% — the biggest decline since July 2016.” With the demand for Chinese going down, there’s a surplus, with lots of goods being made but not much demand for them. This is because of the lessening demand for smartphones all around the world, which Chinese companies like Huawei rely on for their revenue. Because of this, lots of factories are suspending production lines and cutting back on workers’ hours. This is leading to worker protests and a weakening economy, as workers are receiving less income and aren’t able to reinvest it into the Chinese economy.
This recession also has a large impact on other nations. Seth says that “softening demand in China is being felt around the world, with slowing sales of goods from iPhones to automobiles, prompting warnings from the likes of Apple and Jaguar Land Rover.” China’s economy has been the center of the Asian economy for decades, and if it falls, it’s likely that China’s frequent trade partners South Korea and Japan will suffer as well. If China fails to must make changes to its market policies or find another method to stabilize the economy, it’s possible that we will have another global recession.

https://economictimes.indiatimes.com/news/economy/indicators/decoded-the-chinese-economic-slowdown/articleshow/67633558.cms

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