China, world’s second largest economy, in crisis : Experts

Speculations of a possibility of disintegration like the USSR

Beijing (China) – Currently China, the world’s second largest economy, is in trouble due to increasing unemployment and deteriorating economic condition. Some experts believe that China may face the same situation like USSR forty years ago USSR and may collapse and disintegrate.

Experts say, of late Chinese currency Yuan has got devalued.

Larry Elliott, an expert in economics wrote in British Newspaper ‘The Guardian’ that the Communist party in China needs to change economic policies constructively. The strict political control must be relaxed. Chinese President Xi Jinping is a powerful personality and he will never agree to freedom and democracy. As a result, either today or tomorrow, China will follow the suit of USSR. However, it is very difficult. USSR economy was much smaller than Chinese economy.

Communist China’s struggle to shore up its yuan as it contends with a growing meltdown in its housing markets is a reminder that today’s debt crises are intertwined with a monetary crisis, write the editors of the Sun. https://t.co/gDOQZzgr2K

— The New York Sun (@NewYorkSun) August 21, 2023

Meanwhile, a research by Dhaval Joshi of ‘BCA Research’ was published. According to this research, China has progressed a lot in 10 years. In the world economy, China’s individual contribution was 41% which is double than the US contribution of 22%. Entire Europe’s contribution was only 9%.

According to Elliott, we cannot say that China’s economy did not do well because of lockdown during Covid-19, it was already going down.

Larry Elliott for The Guardian: #China is too big for a Soviet Union-style collapse, but it’s on shaky ground
“China made up such a big slug of global growth because its economy was growing at about 8-9% a year. Its growth rate is now half that” https://t.co/y2Edf0ulzo

— Patricia M Thornton (@PM_Thornton) August 21, 2023

Adam Posen, President of ‘Peterson Institute for International Economics’ said that China was already facing “long economic Covid” since the mid of last decade.