If China’s Economy Is Really in Trouble, What Does It Mean for The Global Economy

Concerns are escalating regarding China’s economic stability, drawing stark warnings from the West. US Treasury Secretary Janet Yellen labeled China’s slowdown a significant “risk factor” for the US, while President Joe Biden described it as a “ticking time bomb.” Parallels are being drawn to Japan’s financial descent decades ago, suggesting severe repercussions for global economies. If China’s decline is drastic, it could force the US Federal Reserve into hasty rate cuts. This paints a troubling picture given the interlinked nature of global economies.