The world’s second leading economy is slowing down. China is expected to announce its slowest quarter in the last 10, as the national GPD increased by only 8.7 percent, which is the slowest quarter since 2009. As reported by Bloomberg, this is the fourth straight declining growth quarter for China, a country whose economy is expected to outpace the United States for the world’s top spot in the next 10 years.
However, the slowed production for China isn’t all due to issues within the nation’s borders. In fact, most of it has to do with issues elsewhere, including the United States and Europe. Europe’s economy didn’t grow at all in the last quarter, which reduces the amount of imports the country brings in. With China serving as a major exporter for the region, the reduction of monetary investments by the west reduces the amount China is able to sell, which in turn slows the economy. Although to be fair, most other nations would take an 8.7 percent GDP increase as many are struggling just to stay relevant.
The Chinese economy has been largely protected against the United States and Europe’s economic recessions in the past few years, but it may just be catching up now. Very few countries are able to support the consistent level of growth China has, as often times the GDP outpaces the rest of the country’s economic platforms, resulting in the eventual burst of the GDP and overall reduction of the country’s services.
Although maintaining the top economic billing in the world is important to many in the United States, it should not come at the cost of a Chinese economic downfall. With the Chinese government holding most of the U.S. debt, a downfall would result in immediate request to pay back financial loans the United States is surely not able to pay back.