US: new round in the tech contest with China

Things are not looking good for the Chinese economy, notes the Tages-Anzeiger:

“The latest broadside in the tech dispute with Washington could not have come at a worse time for Beijing. China’s economy is in danger of tanking in the long term. Both consumer and producer prices are falling, indicating a demand problem in the market. As a result, China’s companies are barely investing any more, but those that don’t expand their capacities won’t report growth. The big danger is that the companies will all start reducing their debt at the same time to avoid insolvency. However, what at first glance sounds like a healthy move for each individual company will turn into a scourge if they all do it at the same time, because it would further stifle growth.”

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