[12]Policymakers in China are pursuing such remedies because China’s economy is hobbled in at least 10 ways. The perils surrounding China’s banks are amplified by a fourth problem; covid-19. [24] A seventh worry is that the deglobalisation fanned in part by China-US tensions deters the Western investment that drove China’s economic ascension. To be sure, China’s economy is still expanding, the manufacturing sector is in fine shape and the country’s state-backed financial system can absorb huge losses. Rather than fuel aggression, China’s economic woes might push Beijing towards a rapprochement with Washington.

Source: New York Times October 14, 2022 17:03 UTC