nytimes chinese start to lose confidence in their currency

It’s a nuclear power that will probably remain the world’s biggest manufacturer for a long time. Ron DeSantis, running a far second in GOP polls behind Trump, recently unveiled an economic vision centered on further reducing China’s economic power.Ĭhina isn’t fading into the sunset. Biden, running for reelection, has violated diplomatic protocol by calling Xi a “dictator.” Trump, the leading GOP contender in the 2024 race despite 91 criminal charges against him, has plans to limit US trade with China even more if he gets elected. Politicians in both US political parties become have become aggressive China-bashers. It doesn’t yet provide Russia desperately needed military gear, but it is now Russia’s biggest energy customer and it provides Russia many products difficult to get elsewhere because of sanctions. As a coalition of US-led nations sanction Russia over its barbaric war in Ukraine, China has become Russia’s most important ally. Xi, for instance, regularly promises to “reunite” China with Taiwan by invading it. In the early 2000s, shortly after China joined the World Trade Organization and began its export boom, many Western analysts assumed China’s communist government would become more democratic and friendlier as capitalism made it wealthier. It matters because China under President Xi Jinping has increasingly become a militant threat to neighbors, including Taiwan, and an antagonist of Western democracies. The trajectory of China’s economy is more than a chest-thumping contest.

And a burgeoning trilateral alliance between the United States, Japan, and South Korea is in part an economic bulwark against China’s heft in Asia. Bills Biden signed to promote US manufacturing of semiconductors and green energy technology appear to be diverting some investment away from China back to the United States. New export controls ban the sale of certain US technologies to China, to inhibit production of advanced military weapons. Yet Joe Biden kept those tariffs in place after he became president in 2021. Trump’s trade war with China mostly raised costs on US importers - including consumers - while failing to accomplish its stated goals. (Tingshu Wang/REUTERS) (Tingshu Wang / reuters) Structural and cyclical problems? Customers inside a morning market in Beijing. As president, Trump imposed tariffs on hundreds of billions of dollars of Chinese exports to the United States, hoping to trigger more US manufacturing and cut US reliance on China. When Donald Trump first ran for president in 2016, he complained that China was “ eating our lunch,” citing record-high US trade deficits with China. 21 report.Ĭhina’s stagnation could have unexpected effects on global investors, American policymakers, and even US elections. “Given how long we’ll be living with China’s economic struggles, investors will have plenty of time to get up to speed,” Capital Economics advised in an Aug.

The real youth unemployment rate might be as high as 46%, according to the Eurasia Group.Ĭhina’s communist government has stimulated the economy out of many slowdowns during the last 25 years, but recent efforts, including interest rate cuts and other measures, have underwhelmed investors and triggered stock sell-offs. Meanwhile, the unemployment rate among 16-to-24-year-olds in China has officially risen from 11% in 2018 to 21% now. China still isn’t, and it may never join the ranks of so-called advanced economies. Japan, at least, had become a rich country by then. That's when runaway growth came to a screeching halt and worries about an Asian nation’s world domination proved wildly unfounded. Economist Paul Krugman, also a New York Times columnist, likens China to Japan in the early 1990s.

Instead of marveling at China’s prosperity miracle, economists are now pondering whether China’s woes will bring down other parts of the global economy.ĭesmond Lachman of the American Enterprise Institute recently told Reuters that China’s economy is unlikely to eclipse the United States anytime within the next 20 years. China’s economy never powered out of the COVID pandemic the way the US economy did - and it’s barely growing now. Now it looks like that day may never come.Ĭhina’s economy has hit the skids in ways that suggest 25 years of supercharged growth may be ending, well before China achieves economic superpower status.

Nytimes chinese start to lose confidence in their currency