China's economic decline is worrying for the whole world


- Joe Biden calls it a ticking time bomb

- Policy makers around the world are getting confused: Famous global companies are leaving China

New Delhi: The economic slowdown in China has spread a wave of anxiety around the world. Earlier it was also hoped that China would make an important contribution to global economic growth. But on the other hand, China's economic development has been showing a slowdown for the past two years. It has also affected the global economy, which has already started to decline in the year 2023. So the policy makers are confused China has drastically reduced imports starting from construction materials to electronics. Companies such as Caterpillar IMC say China has reduced imports of construction machinery more than expected.

US President Joe Biden has called the economic challenges facing China a ticking time bomb.

The effects of China's economic decline are being felt around the world. Investors have withdrawn about 10 billion dollars from China's stock market. So there is a direct impact on blue chip stocks. Financial giants such as Goldman Sachs and Morgan Stanley have predicted a collapse in Chinese equity prices, fearing the impact on other countries as well.

The biggest impact is likely to be on the economies of Asia and countries in Africa, the two analysts said, adding that due to the decline of China's economy, their trading systems will also become unbalanced. Japan's exports to China have declined. From motors to semiconductor chips, imports from China have declined over the past two years. In terms of China's week-recovery, South Korea and Thailand have also lowered their growth rates.

The positive side of China's economic decline is that their global prices have fallen. The slowdown in China has also reduced the prices of goods shipped internationally (via steamers). This has benefited countries like America and England. In fact, they will find relief in the fact that those countries are bearing the brunt of high inflation rates.

Countries like India will benefit from these economic difficulties of China. Companies leaving China are likely to settle in India. So they can also attract foreign capital investment. However, China's negative growth will not remain without impact for other countries of the world. According to the IMF, a 1% growth in China would lead to a 0.3% growth in the global economy, but now the situation is the opposite. As China's economy weakens, it is likely to have an impact on the US and Europe. Economic experts say that the negativity is feared to spread globally.

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