China Faces Economic Troubles that Could Reverberate Globally

China's economy is imploding due to structural issues like debt, deflation, and demographics combined with the property market collapse and zero-Covid policy. This ends its apparent economic miracle.

The West should not gloat, as China's economic troubles will soon become global troubles. When China sneezes, the world catches a cold.

China's exporting of deflationary forces via global trade and finance will be hard for Western economies to resist given supply chain dependency.

The inflationary pressures China caused coming out of the pandemic have now reversed into destabilizing deflationary risks.

The economic turmoil will not curb China's global ambitions and may embolden Xi Jinping to deflect blame outward. Geopolitical tensions will likely rise.