From its usual rapid 8% yearly pace, the country’s growth has slowed to more like 3%. After a decade of overbuilding, real estate corporations are collapsing. In addition, the inhabitants of China have been unable to consume their way out of the depression brought on by the pandemic, exasperated by protracted coronavirus lockdowns and losing faith in the leadership.
What does it signify for the largest economy in the world if the second-largest is struggling so badly?
Given China’s limited significance as a consumer of American commodities and the tenuous connections between the countries’ financial systems, the ramifications for the United States at this time are presumably small.