The COVID-19 pandemic is currently hurting the Chinese economy, just like in other countries. China, however, is in danger of experiencing a further slowdown in economic growth due to domestic economic issues. This raises concerns about international markets and could create new issues for traders and investors.
The Chinese economy is reportedly contracting at its slowest rate in several years, according to the most recent reports. For international investors that monitor the dynamics of the Chinese economy, this is concerning. The primary causes for worry are that China is having issues with rising debt, sluggish output, and further weakening economic development.
The impacts of China’s slower economic growth may also be seen in the US. Lower prices for the commodities and services the US sells to China, in particular, could result in financial losses. The US and China’s relations may also deteriorate as a result of China’s economic downturn, which might result in further issues for the two greatest economies in the world.
The situation in China should not be ignored, and investors and traders should keep an eye on the movement of the international financial markets. Economic statistics should also be taken into consideration, as they could serve as precursors to future developments. Reports on the GDP, manufacturing, and retail sales indices, for instance, can shed light on the direction the Chinese economy is taking and how this can impact international markets.