China is facing a severe economic downturn, with record youth unemployment, a slumping housing market, stagnant spending, and deflation, which has led to a sense of despair and reluctance to spend among consumers and business owners, potentially fueling a dangerous cycle.
China's economy, which has been a model of growth for the past 40 years, is facing deep distress and its long era of rapid economic expansion may be coming to an end, marked by slow growth, unfavorable demographics, and a growing divide with the US and its allies, according to the Wall Street Journal.
A record number of Chinese graduates are facing difficulties in finding employment, with soaring youth unemployment and a challenging job market driven by the country's post-Covid economic slowdown.
China's decision to suspend reporting its July youth unemployment rate has sparked controversy and speculation that the government is trying to hide unfavorable statistics, particularly as young people in China face a dire employment situation due to the economic impact of COVID-19 and other factors.
China's economy is facing challenges, with youth unemployment at a record high, mismatched skills in the job market, and the risk of falling into the middle-income trap, jeopardizing President Xi Jinping's goal of turning China into a high-income nation.
Youth unemployment remains high in most countries, with Spain having the highest rate at nearly 27.4%, indicating potential long-term impacts on young adults' careers and overall economic prospects.
China's government is concealing economic figures and data, including youth unemployment rates, as experts believe it prioritizes stability over transparency, leading to concerns and doubts about the true state of the country's economy.
China's urban youth unemployment rate has risen to 21% as of May 2023, creating further challenges for the country amidst the Covid pandemic and impacting its economy.
US companies with significant revenue exposure to China are at risk due to the country's struggling economy, characterized by high youth unemployment rates and recent property defaults, according to Bank of America.
China's unsustainable economic model, official corruption, mismanagement, and destruction of human capital through the one-child policy will contribute to the country's collapse and hinder its rise as a global power.
China's "demographic dividend," once believed to contribute to its economic success, may not have existed as a new study suggests that the quality of the workforce, rather than the quantity, was the main driver of GDP growth, indicating that demographic changes in the future may not be disastrous for China's economy.
