Could China’s Economic Woes Impact the US?
Summary from the AllSides News Team
China is facing several economic challenges, leading some experts to consider the global impact of a “hard landing” — or even a broader collapse.
Slowing Growth: By some measures, China’s yearly GDP growth slowed to about 3 to 4% over the summer — much slower than its usual 6 to 8% range. Debt crises among local governments and major real estate developers have added to the country’s economic uncertainty. Furthermore, Gen Z workers across Asia have increasingly refused to take the low-pay factory jobs that fueled the region’s manufacturing boom.
Exporting Deflation: As the U.S. and other Western countries continue to tackle inflation, China is now dealing with the opposite problem: deflation. Some analysts suggest these price drops could help countries like the U.S. get inflation under control.
How the Media Covered It: Coverage of China’s economy came primarily from business outlets, most of which AllSides rates as Lean Left or Center. Some coverage differed on discussing China’s old “Zero-COVID” policies; while an American Enterprise Institute (Lean Right bias) op-ed called them “economically disastrous,” a New York Times (Lean Left bias) analysis noted that citizens were “frustrated” by “lengthy coronavirus lockdowns,” causing “pandemic-era malaise.”
Featured Coverage of this Story
From the Left
What China’s Economic Woes May Mean for the U.S.
The news about China’s economy over the past few weeks has been daunting, to put it mildly.
The country’s growth has fallen from its usual brisk 8 percent annual pace to more like 3 percent. Real estate companies are imploding after a decade of overbuilding. And China’s citizens, frustrated by lengthy coronavirus lockdowns and losing confidence in the government, haven’t been able to consume their way out of the country’s pandemic-era malaise.
If the world’s second-largest economy is stumbling so badly, what does that mean for the biggest?
Short answer: At the moment, the implications for the...
From the Center
How China's Economy Collapsing Would Impact the U.S.
After decades of incredible growth, China was widely considered poised to overtake the U.S. as the biggest economy in the world, with its GDP surpassing that of America in the coming 10 to 25 years. But an unexpected slowdown of its economy is now making this increasingly unlikely, experts told Newsweek.
When China ended its COVID-19 restrictions earlier this year, the country's economy seemed to be recovering quickly. But then, in July, that growth was suddenly shown to be slowing down, hitting a slump that has led some to wonder whether...
From the Right
The Federal Reserve Must Pay Attention: China’s Economy Is in Serious Trouble
A disturbing characteristic of Jerome Powell’s Federal Reserve is how US-centric it has become. In following its data-dependent interest rate policy, the Fed makes little reference to world economic developments in general and to those in China in particular. It does so even though those developments could materially impact our economy. This is all the more surprising at a time when China, the world’s second-largest economy and, until recently, its main engine of growth, is in deep economic trouble. It is also surprising when that country appears to be on the...
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