News that caught our eye / The week ending August 18, 2023
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NOTE: The news reports below are not in chronological order. There is often a time lag in their reaching the US and in gaining our attention. These reports reflect the opinions of a variety of news sources.
China’s recent economic woes suggest there is something seriously amiss / August 12, 2023
China’s current economic sluggishness may be the slurry gray band in the global economic river, but its causes are deeper: underwater currents of systemic problems. These include China’s increasingly authoritarian political policies, a large amount of bad debt, poor investments, excess supply, and low demand. Which is more challenging: a successful China or a flailing one? (The Guardian)
Biden’s ‘ticking time bomb’ remark referred to China’s economy / August 12, 2023
President Biden’s comments about China at a political fundraiser last Thursday were not well-received by China, who criticized the comments as smearing China’s reputation for political campaign points and staining its image in the global theater. Currently, Biden plans to meet with Xi Jinping later this year (Al Jazeera).
Floods Strike Blow to China’s Faltering Economy / August 11, 2023
Flooding from China’s two recent typhoons has created billions of dollars of infrastructure damage and personal property loss, further hampering China’s struggling economy. The country’s reputation for reliable infrastructure also took a hit when the flooding destroyed flood barriers and bridges. Many provinces would like to allocate funds for repairs, but they don’t have enough (VOA).
Will China ever get rich? A new era of much slower growth dawns / July 17, 2023
Already a month old, this article also looks at systemic issues plaguing China’s current economic woes. Unless the government comes up with substantial changes, China may not see its goal of advancing the US economy for 10 or 20 years, creating disillusionment among its people and others expecting to benefit from China’s rise (Reuters).
China’s hi-tech manufacturing reaches ‘tipping point’ amid US curbs / August 15, 2023
China’s industrial output grew by only 0.7 percent in July, causing economists to call for heightened vigilance in China’s economy. US sanctions on hi-tech manufacturing and investment have also tightened the screws on China, causing ripple effects that affect other areas, like the staggeringly high youth unemployment, and potentially, the global economy (SCMP).
China reports big data miss in July, stops releasing youth unemployment / August 14, 2023
A long list of China’s economic figures posted less than expected growth in July, and China’s youth unemployment figures were simply not reported at all by the National Bureau of Statistics, citing a reassessment of its methodology. All eyes are on Beijing to take the necessary steps to stop the spiraling economic downfall (CNBC).
Asia shares decline as faltering Chinese economy sets off global slide / August 15, 2023
Asian markets from Japan to Australia dipped Wednesday amid the release of China’s economic figures for July. Wall Street also saw a decline. Currently, the US economy is doing better than expected, even in spite of high inflation, but forecasters suggest that a cooling season may arrive in August (AP News).
Xi caught in ’leadership crisis’ as economy tanks, property giant teeters / August 17, 2023
As real estate developer, Country Garden, the CCP’s “poster child” of economic success, teeters on the brink of default within a month, the pressure is on for Xi Jinping to rescue China’s economy, and perhaps, the nation itself. But he hasn’t been seen publicly since the end of July (news.com.au).