Is China's Economy Heading for Collapse? What We Know

Seven months after the end of China's COVID-19 policies, the country's economy is growing slower than expected, hitting a slump that has raised concerns over whether it is heading toward a collapse. Is China's economy heading toward a collapse? These are the signs that are playing a part in the country's growth slowdown and worrying observers about a potential crash. On top of the yuan crisis, the National Bureau of Statistics of China reported that the country's economy has officially fallen into deflation after consumer prices fell year-on-year in July-by 0.3 percent-for the first time in over two years. While Western countries, including the U.S., have been battling with the opposite problem-trying to bring down rampant inflation-deflation for China means weaker trade, weaker sales, and a weaker outlook for its factories as the prices of goods fall as demand wanes. Zhongrong Trust has also reportedly missed payments to corporate investors for a total of $15 million, raising concerns over a rumored liquidity crunch that could trigger a wider financial crisis in China. For centuries, China had been the most populous country in the world, a record that was snatched in April by India. A demographic slowdown in China will leave the country with fewer available workers-and more retirees to take care of.