China’s economy is entering uncharted territory, and that could spell trouble for the rest of the world.
After decades of sharp expansion, the Chinese economy is slowing down. Growth in 2018 is set to be the weakest since 1990. And 2019 looks even worse.
The world’s second largest economy is feeling the effects of a darkening trade outlook and government attempts to rein in risky lending after a rapid rise in debt levels.
The drivers of China’s slowdown have yet to have their full impact on the economy, and the combination of both is unprecedented, analysts at Moody’s wrote in a research note this month. "This creates a high degree of uncertainty and risk."
What happens in China matters for businesses and markets across the globe. It’s the world’s largest exporter of goods, sucking in materials from other countries in order to ship out iPhones, laptops, bulldozers and tons of other products.
