China’s economic problems should be welcomed rather than feared as the world grapples with high inflation and a cost of living crisis.
. With around 70 per cent of household wealth tied up in real estate, signs the property bubble could burst have hammered business sentiment, causing the world’s second-largest economy to stall. And that’s been noticed – with China’s woes now looming large over financial markets across the world.During the global financial meltdown of 2008, China launched the largest stimulus package in history and was, under Hu Jintao, the first major economy to emerge from the crisis.
I read a research note last week claiming that China’s predicament is now “100 times worse than Lehman”, posing a much greater threat to global stability than the US banking and property sector before the 2008 collapse. What’s more likely than a 2008-style collapse in China, in my view, is a drawn-out period of sluggish growth. China’s economic travails are being compared to Japan in the early 1990s, when its huge asset bubble burst, sparking a decades-long cycle of deflation and, at best, insipid economic expansion.
Whatever the political ebbs and flows in relations with the West, China has contributed far more to global growth than the US over recent decades.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Adidas chief exec: Kanye West ‘didn’t mean what he said’ with antisemitic commentsBjørn Gulden said West, who praised Adolf Hitler and the Nazis, wasn’t ‘a bad person – it just came across that way’
Read more »
Firefighters battling blaze at factory in Sydney’s westTen fire trucks and 100 firefighters are currently battling a blaze in Sydney’s west which has engulfed a plastics factory.
Read more »
More than 100 firefighters battle factory fire in Sydney’s westMore than 100 firefighters have contained a major plastics factory blaze in Western Sydney that threatened to spread to nearby buildings. The fire started just before 4am Thursday morning and took crews with 25 fire trucks about 90 minutes to bring the fire under control. “The crews did a very good job in stopping the fire from spreading to the rest of the factory which is a real concern,” NSW Fire and Rescue Superintendent Nick Andronicos told Sky News Australia. “At the back of the factory, there are a number of dangerous chemicals and accelerants.” Police are on scene and have started an investigation into the cause of the blaze.
Read more »
Lask 1-3 Liverpool, Brighton and West Ham in action: Europa LeagueJoin our writers for all the key match action from Thursday’s Europa League games
Read more »
Mining exploration thought 'abandoned' by locals ramps up in Central West NSWA proposed gold, lead, zinc and silver mine near Blayney in Central West NSW is a step closer to becoming a reality, but a nearby community says it is not being included in the conversation.
Read more »
Trent Cotchin’s ‘unbelievable’ gesture ahead of every grand finalThe Richmond premiership hero showed why he is one of the greatest captains in AFL history.
Read more »