China’s economy is going through a difficult time.
China’s economy is a ticking time bomb according to US President Joe Biden as China’s consumer prices fell for the first time in two years. Biden also gave a warning about the potential of China to do “bad things” during China’s economy being in a difficult time.
According to Quartz, China’s economy slowing down may be slightly attributed to the pandemic and their zero covid policy, which lasted long after effective covid-19 vaccines were developed. China’s economy is facing a difficult time because of a number of issues that have been building for the past decade, stated by George Magnus, an economist.
China’s economy slowing down may have been caused by bad debt, unprofitable infrastructures, underutilized public transport and more. China’s economy is having a hard time as shares from China’s largest private property developer hit new lows on Friday. China has also reported the lowest level of monthly new bank loans in a decade.
President Joe Biden calls China’s economy a ticking time bomb, as well as warning about the potential that China would do “bad things” as China’s economy is slowing down.
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President Biden stated how he did not want to hurt China and wanted a rational relationship with them, but he had a dire prediction about China’s economy.
From the article released by Reuters, the data from China’s National Bureau of Statistics, China’s economy expanded by 4.5% in the first quarter and 6.3% in the second. However, the gross domestic product only increased by 0.8% from April to June compared to the same period last year, following a 2.2% growth in the first quarter.
To help China’s economy, and to manage the country’s borrowing, China’s government announced that local governments are allowed to issue 1 trillion yuan of bonds to absorb the debt of local-government financing vehicles.