Topic: China’s economy is contracting and this is not good for the global economy. (Read 483 times)

   
Thing may change in coming time as people would like to not depend upon one country much as we have seen what this has resulted in this turnmoil times. Also things will look much different then what it was before and in coming time the world would change for better reasons only I feel. No doubt we are in recession and things may take time to recover now and things will move out from China slowly too.

The trade war is proof that China is a great economic power challenging America, the superpower. Many bilateral trade deficits against China. This proves that China is a major economic power in the World. Besides that, as a matter of fact, China indeed dominates world trade and funding. One Belt One Road is colonialism 5.0 which is carried by China throughout the World.

The middle-income trap not only benefits developed countries but also developing countries. China would be happier if China and the partner country OBOR in the middle-income trap. Even China is keeping China and its partner countries as developing countries rather than developed countries. Because this is more profitable. With the title as a developing country, many importing countries will provide preferential tariffs so that the prices of their products are competitive in many developed countries.

Besides that China and many OBOR partner countries China already bears the title of developed countries not developing countries anymore because, at the end of February 2020, the US Trade Representative Office (USTR) crossed China and 23 other countries from the list of developing countries that automatically now hold the status of developed countries.

There is indeed a capital flight from China, even now the United States is building India like America is building China to contemplate the power of China in Asia, but the shift in the world's manufacturing centers will not really hit China, with reason. With BRI, the China project is not only domestically but in many countries which are OBOR's Chinese partners. Brillian's China strategy keeps Renmimbi spinning in China so China can print as much money as possible but the dollar enters China.

I don't think China has any influence on the global economy. As we all know, China has not yet escaped the middle-income trap. The Chinese economy has been growing rapidly in the past 10 years because many multinational companies have set up factories in China to take advantage of cheap labor. But when the trade war between the US and China took place, companies tried to move factories out of China to other countries like Vietnam, India and Mexico. As a result, China's economy will be in a deep recession and they have to create jobs for their 1.4 billion people.

The contraction in their economy is not a wonder since they are most affected in the early days from corona virus but I am seeing lot of leaders starts to blame China for exporting low quality products even in the pandemic because they are looking to make more money by using this period so many companies and countries wanted to move from China to save themselves from huge fall.

I doubt that many countries see chinese products as corona carriers since the risk of the virus remaining active after international transport are pretty much nil:



Unless you share a border with China, Chinese products will usually travel for weeks under very unforgiving conditions until they reach their destination. Remember we're talking about what is essentially a simple piece of RNA wrapped in fat, not some extremophile survivalist bacterium.

What I do believe is that the trust in Chinese health-care export has decreased a lot after several governments purchasing face masks of questionable quality [1][2][3].

[1] https://www.ft.com/content/f3435779-a706-45c7-a7e2-43efbdd7777b
[2] https://www.abc.net.au/news/2020-04-04/china-coronavirus-covid-19-medical-supplies-recalled-regulation/12105110
[3] https://orf.at/stories/3160881/ (German only, sorry)

many countries worry chinese product could be the corona carrier to their countries.. and some of them prefer to closed import from china till condition recovered again. but its not only the reason why chinese product decrease alot in international trade, another countries also suffered big negative impact fro covid 19 virus. maybe they will reallocate budget allocation in this pandemic and save the citizens.

Demand for Chinese products has decreased and the reasons for this are clear to everyone. And now China is busy supplying medical equipment and medicines to fight coronavirus to many countries around the world, while these countries are sitting in quarantine. And when we compare the volume of China's exports, we forget that other countries will have even lower figures and, consequently, losses will be greater than China's. Because everything is known in comparison.

I never thought of actually coming up with this news. We have known China's independence when it comes to their economics status and they never failed to show us its strength. We even saw a light scratch only on their economy durint the virus. So now, hearing a 6.5% decline is shocking. It can affect other countries as well causing economic depression but hopefully, not only China but all other affected countries will heal itself and build itself again.

China will never fall under a financial recession They keep their information confidential to everyone within the world As China may be a developed country within the world more deals are through with China within the commercial field. But you've got rightly said that the Chinese economy is contracting and it's not good for the worldwide economy because the economies of every country are so constrained how they're going to be ready to trade if they're spending many days in crisis.

It was a shocking event, where developed countries and developing countries experienced a very critical monetary impact due to the spread of the virus, China is one of the strongest countries in international trade but in reality, they enjoyed a drastic monetary decline, and this situation will close a long time because international countries supporting their trade experience the same thing where they experience a really serious financial slowdown. I don't think I will bet too early on what will appear next.

I'm not surprised anymore that China's economy is also in the rock as most of the countries are also experiencing this. But i believed China will still have its own time to back up its falling economy and they don't care whether it will be fair or unfair to some of their trading countries. China is great but this time, i think they are secretly fighting selfishly.

if chinese manufacturing were really running at full capacity, it would only intensify the deflationary effects on the economy by increasing an already saturated supply of consumer goods. continuing to produce above and beyond real demand would only push prices even lower. that would be an economic disaster for china.

the oil market is a microcosm for this effect. there is a drastic oversupply of oil on the market---so much that nobody wants to store it. so the price is crashing (deflation) and producers are now going deep in the red. this will lead to bankruptcies, market uncertainty, bailouts, and all that good stuff.

that's the trajectory the chinese manufacturing sector is on too if american and european consumer demand doesn't strongly reverse, or production isn't scaled down in preparation for a depression.

Lol, you realize that if the other countries are suffering, the factories in China running at 101% makes ZERO sense?
Yeah, they've recovered, they are going back to work..to whom will they sell all they produce?

Of course, China lies with all the numbers they publish so to get the full picture you would have to look at the countries that are also exporters to Europe and US. And from there are only sad stories, like the garment industry in Bangladesh who is seeing 3 billion or Vietnam with 1 billion in canceled orders and that's just the tip of the iceberg, you can't produce things if you don't have somebody to sell to.

Forget the government's numbers, this is the reality in China

Without the EU and the US which represent half of the world economy in GDP terms and imports, producing things that nobody can buy is a waste of money.

I am not really that worried about China, they have been the hardest hit so far because it was the country were the corona virus first appeared, the ones I am worried about are the economies on Europe and the US, they are being hit by this virus in an even harder way and they were in a bad shape to begin with and now they are printing huge amounts of money, if this keeps for long then this is going to be one of the worst crisis that we had to face and the worst part is that no country will be safe, on the other hand this could be an opportunity for bitcoin to shine but at the same time it will be an incredible test for those that are holding a significant amount of bitcoin since the volatility will be extreme in such scenario.

China's population is 1.4 billion and its sufferers are only 80+ thousand!! my question "Are you sure CHINA is honest with the number of their COVID-19 sufferers??

days after the end of this "PANDEMIC" it will be hard for many countries to revive their country's economy, as you say "PREPARE YOURSELF FOR ALL POSSIBILITIES THAT WILL HAPPEN IN THE FUTURE"..

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China was the first country of the COVID-19 virus and then they bought a lot of masks and PPE from all over the world, then the whole world was affected by COVID-19 and then the world lacked masks and PPE, what a nice scenario to mess the world  

Advantage when you are the first one to recovered and while the world economy are suffering China is on the process of bouncing back, they are moving and slowly putting things accordingly, there's no real vaccine that's been proven to cure this pandemic virus but China's Wuhan province already open after that massive infections that circulates around the place, this province is already open meaning to say that economy now is ready to be rebuild.

This Should not be strange, you know what they have gone through and you know how much damage could have happened in the few moment of the lockdown and disaster. I'm sure they would recover, because China is smart about that. They actually had much loss. If China could be so affected with their level of technological advancement, how much more many underdeveloped countries.

They should not be doing anything at this point. All they should do is, give some air to breath to rest of the world. China being biggest and cheapest market for the manufacturing industry, i believe its time to flip the cards now. Most of the country are now on the verge to put up their own industralisation as big as China owns today.

Dependancy on chinese market has led us to no where and its also very fearful if china is bioengineering viruses like corona in todays date. I know, I know no proof for that last claim but its china, they can do anything to "arrest" their own economy. May be thats your answer.

Have you not wondering why China easily handled the virus? I mean the suspicion is quite strong with a pretty basic logic of thinking and we already have many of threads talking about theories with the pandemic. We've known China for a long time, their economic progress is really noticeable as the world goes on that even USA is a bit shaken with the China's industrialization taking a hard bang on the spot. It's good to know that China recovering, I hope they'll find the cure for the pandemic as quickly as possible.

^ Definitely country of China is the ground zero of COVID-19 that their economy was affected as well. Though their economy has dropped down a bit they were able to surpass the pandemic while other countries are still in crisis. Since China was able to overcome then they are the first ones who can bounce back on their economy. While other countries are still suffering from this crisis they are already of help, in fact, many supplies that are necessary from this pandemic are coming from China. Nevertheless, I dunno, if they are mind, is in the business despite the calamity happened. AFAIK.