Could China’s Economic Woes Impact the US?

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.”