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I think people fear that the trouble in China is reduced global demand, not just the trade wars or a local problem.
by raducu 7y ago
I think people fear that the trouble in China is reduced global demand, not just the trade wars or a local problem.
- sonnyblarney 7y agoYes, it will have knock-on effects, but a serious China slowdown is in and of itself no reason to cause recession pretty much anywhere. Again, it could burst some kind of bubble and start a recession, but a China slowdown itself is not enough.
- raducu 7y agoI was trying to point out that since China's factories are so much export oriented that seeing decreased factory activity most likely means a weak global demand. If the problem was with chinese real-estate, yes, the risk for contagion was minimal.