2023-08-28 21:29:24
Part of the Chinese capital, Beijing
Contrary to previous expectations, which saw that the growth of the Chinese economy, the second largest economy in the world, will be a leader and engine for growth in the global economy in general, the witnessed slowdown in China’s economy has become a dangerous indicator that threatens the danger measures in different parts of the world.
And policy makers around the world are increasingly preparing for a possible negative economic impact resulting from a decline in China’s imports of everything from raw building materials to electronics.
According to a report published by Bloomberg Agency, Caterpillar Corporation stated that Chinese demand for machinery used in building and construction site work is currently worse than previously expected.
The real estate and construction sector in China is one of the driving sectors affecting the country’s economy.
Fears of a slowdown in the growth of the Chinese economy prompted US President Joe Biden to describe the economic problems that may result from slowing global economic growth as a “time bomb.”
Investors around the world have already begun withdrawing regarding $10 billion from the Chinese stock markets, a withdrawal that represented the largest sale of shares of the largest and most stable companies in the Chinese market.
Goldman Sachs and Morgan Stanley also lowered their forecasts for Chinese stock movements, as well as issuing warnings that the less optimistic outlook would spread to other stock markets.
The slowdown in the growth of the Chinese economy is already beginning to be reflected in its neighboring countries, as Japan recorded the first decline in exports in more than two factors last July, following China reduced its Japanese imports of cars and chips.
The slowdown in Chinese economic growth prompted the heads of central banks in South Korea and Thailand last week to lower their forecasts for economic growth in China’s two neighboring countries.
On the other hand, the Bloomberg report stated that the slowdown in the growth of the Chinese economy was a reason for calming global oil prices.
Also, the decline in China’s economic performance means a decline in the prices of goods shipped around the world, and this is beneficial for other countries such as America and Britain, which are already suffering from high inflation.
Other countries, such as India, can also benefit from the weakness of the Chinese economy, by attracting foreign investments to their lands.
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