China's weak economy, including an unstable property market and weak consumer demand, is posing risks to global markets and economies like the US, according to experts.
Despite U.S. trade shifting away from China, the country still relies on China-linked supply chains, leading to higher costs for consumers and uncertain benefits in terms of improved manufacturing efficiency, according to research presented at a Federal Reserve symposium.
Despite efforts by the U.S. and other countries to reduce reliance on Chinese supply chains, Chinese companies have successfully expanded their presence in key markets such as cutting-edge materials and electric vehicles, making it difficult for countries to ensure their economic security.
The US is importing fewer goods from China, with Chinese imports making up the lowest share since 2006, as supply chains shift to countries like Mexico and Vietnam.
China's economic problems are more likely to impact its neighboring countries and Europe than the United States, according to US deputy treasury secretary Wally Adeyemo, who noted China's short-term capacity to handle its economy but stressed the need for addressing long-term structural economic challenges.
Major U.S. companies are increasingly seeking manufacturing alternatives in countries like India to diversify their supply chains and reduce dependence on China due to the pandemic and escalating tensions between Washington and Beijing.
