Furthermore, hehe new dimension of Western sanctions, surpassing anything previously known, will have far-reaching effects on the global economy. China is vulnerable in this area because the Unit States, Europe and Japan remain by far the most important markets for Chinese exports. If access to these countries’ markets were to be significantly restrict, China would ne, to compensate, other markets or its own domestic market: neither of these options seems feasible. In addition to shrinking export markets, China is finding it increasingly difficult to access high-tech from the West.
It’s not just the Unit States that has
Impos sanctions on Huawei and semiconductor companies. There are also European governments that have recently bann Chinese acquisition of cutting-ge technology. Another aspect of deglobalization that is closely relat to the Chinese development model itself is likely to be of particular importance to China: the loss of efficiency through dynamic competition with Western rivals at home. Central to the success of the Chinese economic miracle was the Algeria Phone Number List decentralization and delegation of economic decisions, which promot competition and creativity, and l to a rapid improvement in the quality of Chinese products (although it also long accept corruption). ). If this competitive pressure disappears, it remains to be seen what will happen to China’s innovative strength and its transition to a knowlge economy.
The country’s domestic market faces
Significant economic and structural challenges: high debt levels, an imploding real estate sector and the progressive aging of the population are testing growth. This is accompani by extreme income inequality, an explosion in housing costs, and welfare state institutions that are not yet fully develop to offset falling demand and provide social protection. Also, the Chinese zero covid strategy is failing. The most recent lockdown in Shanghai not only left economic scars, but also made it clear that the country is not ready for the omicron AGB Directory variant and that its own vaccines cannot compete with those of the West. The brutal application of quarantine measures reveal a political dimension to the strategy against covid follow so far.
