Sydney: Rumors of China's collapse come and go, but how it responds to the current crisis will have far-reaching consequences.
Something is happening in China's economy.
Domestically, the deteriorating real estate market, rising debt burdens on local governments and 30-year record low foreign investment levels have led major organizations to 'de-risk' Chinese operations.
Manufacturing giants Dell and Foxconn are among the companies that have diversified their operations by moving production to Mexico, India, Vietnam and elsewhere to reduce their exposure to China.
Since its economy took off under the leadership of Deng Xiaoping in the late 1970s, China has responded to economic downturns by using manufacturing giants for exports to pull the country out of crisis.
The global economy is very different in 2024, but the strategy is the same.Speaking to Bloomberg, French Finance Minister Bruno Le Maire said China was flooding the market, driving down demand and prices, "not only for the EU, not only for the EU, the US, but For the global world." There is a threat to the economy also”.
The economic shock has led some observers to declare that the country, with a declining population and a declining economy, has reached the peak of its power and influence.
On the other hand, what if China's economic machine is not collapsing, but rather – as capitalism did in the 1950s and 60s and in the US in the 1980s – transforming itself into a new set of industrial and economic conditions? Is? Is?
Chinese investment in African countries and the continent's mineral resources has not slowed; Actually, it is accelerating. Huge Belt and Road Initiative investments continue in the Global South, with an increasing focus on green growth, while China is finding new markets for its electronic vehicles away from the US, with its increasingly protectionist approach to trade with China, and Possibly with the EU. Tariff hike on EVs is expected to be announced in early June.Since China is still the top trading partner of more than 120 countries, the trade war would have far-reaching effects. Even if China gets itself back on track, others will want to play a larger role in any future relationship.(360info.org) PY
PY
Something is happening in China's economy.
Domestically, the deteriorating real estate market, rising debt burdens on local governments and 30-year record low foreign investment levels have led major organizations to 'de-risk' Chinese operations.
Manufacturing giants Dell and Foxconn are among the companies that have diversified their operations by moving production to Mexico, India, Vietnam and elsewhere to reduce their exposure to China.
Since its economy took off under the leadership of Deng Xiaoping in the late 1970s, China has responded to economic downturns by using manufacturing giants for exports to pull the country out of crisis.
The global economy is very different in 2024, but the strategy is the same.Speaking to Bloomberg, French Finance Minister Bruno Le Maire said China was flooding the market, driving down demand and prices, "not only for the EU, not only for the EU, the US, but For the global world." There is a threat to the economy also”.
The economic shock has led some observers to declare that the country, with a declining population and a declining economy, has reached the peak of its power and influence.
On the other hand, what if China's economic machine is not collapsing, but rather – as capitalism did in the 1950s and 60s and in the US in the 1980s – transforming itself into a new set of industrial and economic conditions? Is? Is?
Chinese investment in African countries and the continent's mineral resources has not slowed; Actually, it is accelerating. Huge Belt and Road Initiative investments continue in the Global South, with an increasing focus on green growth, while China is finding new markets for its electronic vehicles away from the US, with its increasingly protectionist approach to trade with China, and Possibly with the EU. Tariff hike on EVs is expected to be announced in early June.Since China is still the top trading partner of more than 120 countries, the trade war would have far-reaching effects. Even if China gets itself back on track, others will want to play a larger role in any future relationship.(360info.org) PY
PY
