As Japan s currency drops toward levels not seen since the 1990s, and contagion talk stalks China, there’s no reason to think Beijing will take the trend lying down.
The slowdown of China s economy is causing alarm across the world as it was expected to drive a third of global economic growth this year. Policymakers are preparing for the negative impact on their economies as China s imports decline. US President Joe Biden referred to China s economic problems as a "ticking time bomb." The slump in China s economy is affecting trade in many countries, particularly in Asia and Africa. However, there are potential benefits such as lower global oil prices and falling prices of goods due to China s deflation. Nevertheless, a prolonged slowdown in China will have negative consequences for the global economy.