China's economy is facing multiple challenges, including tech and economic sanctions from the US, structural problems, and a decline in exports, hindering its goal of becoming a top global exporter and tech power, which could have long-lasting effects on its status in international relations and the global economy.
A potential economic downturn in China may have implications for other countries, but the impact on the United States is expected to be minor due to limited exposure to China's economy.
If China were to slip into a deflationary spiral like Japan in the 1990s, it could lead to a decrease in consumer spending, a weakened economy, and negative consequences for the rest of the world, including a slowdown in imports for the US and adverse effects on developing economies reliant on Chinese exports and investment.
The head of the International Energy Agency has called on the US and China to put aside their differences and collaborate on climate change, warning that geopolitical tensions are impeding the transition to clean energy. He also emphasized Africa's potential to play a significant role in the energy transition and urged the international community to support the continent in realizing its renewable energy potential.
The prospect of a prolonged economic slump in China poses a serious threat to global growth, potentially changing fundamental aspects of the global economy, affecting debt markets and supply chains, and impacting emerging markets and the United States.
Forecasts for China's economic growth in 2023 and 2024 have been cut, potentially hindering the country's goal of becoming a "medium-developed country" by 2035 and surpassing the US as the world's No.1 economy.
China's economic tactics, including BRICS expansion, are aimed at challenging the US economically rather than engaging in a war, according to US presidential candidate RFK Jr., who believes China wants to bury the US on an economic playing field while still relying on it.
China's Huawei Technologies' development of an advanced chip for its latest smartphone demonstrates the country's determination to fight back against U.S. sanctions, but the efforts are costly and may lead to tighter restrictions from Washington, according to analysts.
China's military buildup is a preparation for a potential war with the United States, according to Air Force Secretary Frank Kendall, who emphasized the need for America to optimize its forces to counter this rising threat while acknowledging that war is not inevitable.
China's increasing public debt could harm Asian economies, while the US's debt may divide society and hinder support for its green energy transition, according to analysts.
China's struggling economy, including its deflation and property crisis, will have a significant impact on the US due to its high foreign investment exposure in China and the dependence of key exporting countries like Chile, Australia, and Peru on the Chinese market.
China continues to militarize outposts in the South China Sea, disregarding previous commitments to maintain peace and stability in the region, causing concerns for the United States and its allies.
U.S. companies are losing confidence in China and some are limiting their investments due to tensions between the two countries and China's economic slowdown.
China's economic woes may not be catastrophic as its policymakers and the country's vast resources, coupled with its massive economy and global interconnectedness, offer potential for recovery despite mounting financial and geopolitical pressures.
