China is back in the spotlight again after COVID-19 spread, which presumably began in the Chinese city of Wuhan, where the outbreak is widely believed to have started!
🚫 First – Xi Jinping will ‘Not’ be attending the G20 summit this time in Delhi, with no reason given.
🗺️ Second – China has officially released its 2023 “standard map” edition, which shows Arunachal Pradesh and Aksai Chin as part of China.
📉 And now the world’s 2nd largest economy is experiencing a fall after the covid lockdown recovery.
2023 was supposed to be China’s economic comeback year. But what’s really going on?
1️⃣ Consumer Prices are falling (deflation entered the chat after over 2 years)
2️⃣ Real Estate crisis
3️⃣ Fall in exports
4️⃣ Youth unemployment rate hit a record high of 21.3% in June, while around 11.6 million youths are estimated to graduate college this year. (Who will give them job?)
5️⃣ Foreign direct investment is down
6️⃣ Overall debt-to-GDP ratio is about 300% and rising
7️⃣ Decreasing population: In 2022, China’s population fell for the first time since 1961, which was not expected until 2029 or later.
8️⃣ It is one of the world’s most expensive places to raise a family resulting in an all-time low fertility of 1.2 children per woman.
It is also not shocking that China is reducing the release of lots of public economic data.
But despite this, China is still a major bilateral trade partner for many countries and a top supplier of goods (the manufacturing hub of the world).
And this is not the first time China’s economy has run into trouble.
Remember the 2008 global financial crisis and the 2015 capital outflow scare? China faced similar shocks and has emerged stronger both times.
Do you think, the fall of China can be a great opportunity for India? 🇮🇳
Share your thoughts in the comment section below! 🔥💬
