>It is a problem not for the rest of the world, but for China>Indeed, China’s surplus is more a problem for itself than for the rest of the world. It is the only big country where inflation looks dangerously low. Hiring is weak, consumers lack confidence, and the property market has entered the fifth year of a seemingly intractable slump. The central bank is worried that lower interest rates will hurt banks’ margins. And the government is reluctant to do whatever it takes to turn things round.>China’s policymakers have instead relied on unexpectedly strong exports to keep growth on track. That could prove to be a mistake. If the trade war spreads to Europe, or the global economy suffers from an ai bust, foreign demand could easily falter. China would then be forced to make a big fiscal push to revive domestic spending.>Its task could be all the harder for having been delayed. The longer gloomy sentiment persists, the less easy it is to dispel. And China could find itself trying to revive the confidence of consumers and homebuyers just as the world economy is wilting. China has become dependent on the spending of foreigners to stabilise its own economy. It is not being anti-social. But it is being unwise.https://archive.is/OgHFt
Yeah China’s economy is surely about to collapse, not the strong fecund US stock market.
