A change in dynamics between US and China?
Lately, it seems that something has changed in China and the dynamics between the relationship of the US and https://www.bloomberg.com/news/articles/2023-08-10/biden-fears-china-ticking-time-bomb-poses-danger-to-world?cmpid=BBD081123_BIZ&utm_medium=email&utm_source=newsletter&utm_term=230811&utm_campaign=bloombergdaily
The first sign was when the two nations initiated a diplomatic rapprochement through the visit of Secretary of State Antony Blinken to China for a meeting with President Xi Jinping and other high-ranking Chinese officials. This change appears significant because recently more and more rumors have emerged about the state of the Chinese economy. Initially, there were indications that economic growth wouldn't meet expectations. Subsequently, challenges intensified for China, including the semiconductor conflict.President Joe Biden criticized China's economic problems as a "ticking time bomb," expressing that the country is in "trouble" due to slowed growth and a high unemployment rate. He also criticized Chinese leader Xi Jinping's Belt and Road Initiative for its significant lending to developing economies, calling it a "debt and noose." Biden's remarks are somewhat exaggerated and were likely aimed at engaging the audience in anti-China sentiment. However, there are truths underlying these statements, as reports emerged yesterday indicating that a prominent wealth manager in China is facing difficulties. A unit of Zhongzhi Enterprise failed to make payments on several high-yield investment trusts, which are commonly sold to affluent Chinese clients. China's banking regulator has established a task force to investigate this situation, which is closely tied to the country's property market crash.
Posted Using LeoFinance Alpha