Chinese economic activities have been greatly halted due to multiple factors. The Ukrainian War has has negatively affected the global economy, along with anti-inflationary high interest rates from central banks. One of the biggest factors must be the strict COVID-19 lockdown policies by the CCP. Manufacturing, production, construction, and services have all been slowed dramatically, as entire production plants have been evacuated due to the aforementioned coronavirus policies. As a result, China's economic growth has been projected to be at a multi-decade low.
One of the biggest stories currently has to do with major protests in Chinese cities as a result of the strict lockdowns enforced by the government. This in turn would worsen the Chinese economy. One of the biggest markets in China is the real estate market, which has also seen many different issues. The economic implications of China's economic downturn spreads far beyond just the borders of China. Maintaining lockdowns seem to only hurt China's economy, as it allows no room for production. Changing these policies may be required to help change the Chinese economy (as well as help the global economy). Protests may be effective long term to help create the change needed within the autocratic government. Only time will be able to tell though.
https://www.wsj.com/articles/covid-controls-hit-chinese-factories-adding-risks-to-global-growth-11669788260?mod=economy_lead_pos5
Definitely, maybe this is help trigger the removal of the lockdown and also help relinquish power from the autocratic government (which might be a long shoot).
ReplyDeleteWith China producing lots of items and having lots of exports it will be interesting to see how the world economy behaves as the covid policies change in China. I would think that as the protests gain media attention, the process of changing policies will accelerate.
ReplyDeleteChina's trade has hit an all time low since 2020, largely due to its COVID policies, as China is a major trade partner for the most of the entire world, this would impact prices of goods in other countries, adding to inflation plus the Russia-Ukraine war and high interest rates of the FED, inflation is likely to continue for some time.
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