China: A slowdown sends tremors worldwide

Could this be good news for the United States?

Chinese yuan and flag
China’s economic growth has been decreasing
(Image credit: Javier Ghersi / Gettyimages)

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The world's economic engine is sputter­ing, said The Economist. When China abandoned its draconian zero­ Covid con­trols last year, the expectation was that it "would stage a rapid recovery, even as other countries courted recession." In fact, China's economic growth has been slowing, and the troubles keep mount­ing. "Three headlines in the space of two days" last week captured the gravity of China's economic plight. Exports fell by more than 14% from the year be­fore. Country Garden, one of the nation's biggest property developers, missed two bond­ interest payments. And consumer prices declined. "In sum: China's export boom is long over. Its property slump is not. And, therefore, deflation beckons." China's central bank cut interest rates further this week, in a sign of heightened concern from policymakers.

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