Biden describes China as "ticking time bomb" over economic problems

economictimes.indiatimes.com:

China's troubles with high unemployment and an ageing workforce make the country a «ticking time bomb» at the heart of the global economy and a potential threat to other countries, according to the New York Times. «When bad folks have problems, they do bad things,» the president told a group of donors at a fund-raiser in Park City, Utah on Thursday. Once seemingly «inexhaustible» engine which propelled China is now sputtering, posing alarming risks for Chinese households and economies around the planet.

From a profit-enhancing version of globalization, China has devolved into the ultimate wild card in a moment of extraordinary uncertainty for the world's economy, the New York Times reported. The risks have been amplified in recent weeks by a slew of developments. First came word that China's economy had slowed substantially in the spring, extinguishing hopes of a robust expansion after the lifting of extreme Covid restrictions.

This week brought data showing that China's exports have declined for three months in a row, while imports have dropped for five consecutive months, another indicator of flagging prospects, the New York Times reported. Then came news that prices have fallen on a range of goods, from food to apartments, raising the spectre that China could be on the brink of deflation. And in a sign of deepening distress in China's housing market, the intersection of finance, construction and household wealth, a major real estate developer missed payments on its bonds and estimated it lost up to USD 7.6 billion in the first half of the year.

For Chinese workers and households, these events added up to trouble. Around the globe, a weakening Chinese economy signalled a shrinking of demand for major goods. It spelt