China’s Current Economic Situation Could Become America’s Future Problem
Just like looking into a crystal ball, Americans should be able to see their future by taking a long, hard, view of what’s happening in China.
Source: Anthony Kwan/Getty Images
Some media outlets have reported that “China’s 40-year boom is over,” the errors of China’s ways are far more complex than that simple notion. A perfect storm of failures has wreaked havoc on China’s economy. What does any of that have to do with America? The nation is currently on the same trajectory to experience economic ruin.
China is in a Financial Crisis
There’s no denying that when it comes to finances, China is in severe trouble.
Source: S3studio/Getty Images
The country makes most of its money from outsourcing manufactured goods. It is the nexus of China’s economy and has been for decades, but the manufacturing base is now bleeding money. Rising debt has crippled China’s homebuilding industry, which once brought in trillions of dollars into the country.
The United States Is Headed Down a Familiar Path
Consumer prices are dropping, there’s an ongoing real estate crisis, and exports are at an all-time low. On top of that, the unemployment rate in China continues to plummet.
Source: Kevin Dietsch/Getty Images
All of those factors combined could mean disaster for China. Trying to come back from such a catastrophic economic fall is a virtually impossible feat. At the current rate things are going in the United States, Americans are well on their way to being in the same uncomfortable position as China.
The Chinese Communist Party Has Not Been Effective
Many have criticized the Chinese Communist Party’s mismanagement of China’s economic downfall. The CCP has ordered banks to buy stocks to remedy falling stock prices.
Source: Kevin Frayer/Getty Images
The facts of China’s sinking economy have gotten so bad that the CCP has refused to publish statistics at all. To put things into perspective, China is home to more than 1.412 billion people, while the U.S. population is estimated at 331.9 million people.
China’s Government Is at Fault
China has always had the second-largest economy in the world behind the United States. Last year, China’s economy was around 77 percent the size of America’s economy. In 2023, that number dropped to 68 percent.
Source: Kevin Frayer/Getty Images
The Chinese yuan has even fallen to its lowest level in nearly 16 years, forcing banks to set a higher rate for the dollar than market value. Many are certain that an “incoAmpetent government” is to blame for China’s destitute condition.
China’s Government Intrusion Has Destroyed Business
The CCP has continuously stifled China’s entrepreneurs and businesses from thriving, prompting the economy to spiral downward even further.
Source: Justin Sullivan/Getty Images
The CCP has made running a business extremely difficult, if not impossible. The government has applied undue pressure to internet and financial companies Alibaba and Ant. The billionaire businessmen who founded both ventures have attempted to challenge the CCP’s restrictions.
The People of China Want Accountability
Chinese citizens and the CCP have had a longstanding unspoken agreement to turn a blind eye to the government’s misdoings as long as the economy prospers.
Source: Martin Pope/Getty Images
For 40 years, that arrangement worked while China’s people silently watched the heads of the CCP benefit. Now that the CCP has failed to provide a growing economy, the people of China have started taking a closer look at the many ways the government has failed them.
People Have Turned Their Attention to the President of the CCP
President of the Chinese Communist Party, Xi Jinping, is at the helm of China’s ongoing troubles.
Source: Pool/Getty Images
There has been less than 5 percent growth in China under Jinping’s rule, which is underwhelming considering China’s history of astronomical growth at a rapid rate. China has been under immense strain ever since the COVID-19 pandemic brought on forced lockdowns. As a nation with billions of people, China struggled to stay afloat as its entire economy came to a screeching halt.
The Parallels Between China and America’s Economy Are Striking
It’s difficult to ignore the similarities between China’s mistakes and the U.S. government’s failure to correct the nation’s growing economic problem. Inflation in the United States is at a record high and much like in China, the government is to blame.
Source: Chip Somodevilla/Getty Images
The Biden administration favors higher taxes and business regulations while investing trillions of dollars into “politically favored businesses.” As the cost of living continues to climb in the United States, people are struggling to get by.
Is President Biden Comparable to Xi Jinping?
President Biden’s approval rating is at an abysmal 36 percent. According to a recent poll, more than 58 percent of Americans believe that Biden’s policies have had a negative impact on the country’s economy.
Source: Chip Somodevilla/Getty Images
Homes today are less affordable than they’ve been in 34 years. Sky-high grocery bills and credit card debt have stunted the American people. As the cost of living increases, people across the nation are becoming poorer.
It’s Not Too Late for the United States
It may be a scary concept, but it’s a reality that America is following in China’s footsteps. China’s situation serves as a fair warning of what’s to come for the American people.
Source: Scott Taetsch/Getty Images
As China’s economy continues to crumble, it remains to be seen whether the U.S. can turn things around before it’s too late. It’s not too late to fix what has been done, but the U.S. needs to act now before the country’s economy mirrors China’s economic state.