China is grappling with its most severe economic slowdown in recent times, with reports suggesting that the centralization of power under President Xi Jinping is hampering timely responses. The once-booming property market, previously an attractive avenue for Western investment, is particularly concerning, as its dollar-denominated bonds’ value has dropped sharply. Amid these economic challenges, Western countries, including Italy, are considering distancing themselves from China’s economic influence, exemplified by Italy’s intention to withdraw from China’s Belt and Road Initiative.
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Key Points:Â
- China faces a significant economic decline, with its property market identified as the “biggest drag on growth.”
- President Xi Jinping’s power centralization is reportedly slowing down China’s economic response, with potential negative consequences if necessary reforms aren’t implemented.
- Dollar-denominated Chinese property bonds, once valued at over $150 billion, have plunged to $33.8 billion, reflecting decreased Western investment confidence.
- Western nations are re-evaluating their economic ties with China, as shown by Italy’s intent to exit the Belt and Road Initiative.
- The discovery of a massive lithium deposit in the U.S. presents an opportunity for Western nations to bolster their economic security without over-relying on China.
Source: https://unherd.com/thepost/chinas-economy-isnt-slowing-its-collapsing/Â
