A very thoughtful observation from al fin next level:
China’s Decline Hits Positive Feedback Territory
Chinese economic growth continues to decline and it is feared China might even suffer a major recession because of the continued economic problems.
__ Source
Positive Feedback Decline in China?
Slower growth in China means slower growth for the rest of the world…. with the headwinds from cooling global growth China’s economy is likely to weaken further before growth stabilizes in the second half of the year.”
__ https://www.bbc.com/news/business-46941932
You see the cyclic nature of China’s predicament: A slowing economy in China causes a slowing of economies in the rest of the world. At the same time, a cooling of the global economy is likely to further weaken China’s economy. A simple, straightforward positive feedback cycle of decline.
Read the whole thing - China needs us more than we need China. The trade war is working.
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