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China’s economy is flailing. Here’s how its problems could spill into global markets.
By Jerry
- China’s economy is facing headwinds ranging from an unstable property market to weak consumer demand.
- Experts told Insider that a worsening scenario in China bodes poorly for global markets and other economies like the US.
- Both Janet Yellen and Joe Biden have recently warned of China’s spillover risks.
After President Xi Jinping lifted Beijing’s extreme “zero-COVID” policies in December, experts expected that Chinese demand and business would come roaring back so strong that the entire world economy would feel the effects of its reopening.
But the opposite has happened, and experts say the repercussions of China’s economic stumbles could reverberate well beyond its borders.
The world’s second-largest economy looks strikingly weak coming out of the pandemic, and its troubles have ballooned to such an extent this month that Treasury Secretary Janet Yellen warned of China’s risks to the US the same week President Joe Biden likened it to a “ticking time bomb.”
