China’s economy nosediving as U.S. recognizes serious national security threat

By Andrew Powell

The People’s Republic of China is taking a hit economically, after U.S. tariffs, high youth unemployment, a lagging property market, and an increasing national debt, has begun to squeeze the Chinese economy.

According to Reuters financial columnist Jamie McGeever, China’s response to the property crisis and growing deflation is “baffling.”

“The impact of this muted response on China’s economy has been stark. Growth in 2024 is likely to fall short of the government’s 5.0% target, deflationary pressures are intensifying at an alarming rate, investment is collapsing, and credit growth is at a record low,” McGeever said.