Part 6/9:
China’s economic troubles are exacerbated by escalating trade tensions with the United States, especially in light of the new administration’s protectionist promises. With potential tariffs looming as high as 60% on Chinese goods, the traditional export-driven growth model also appears to be in jeopardy. Some economists argue that the actual growth rate may be significantly overestimated, suggesting it could stand closer to just 2.4%.
Meanwhile, even the state-owned enterprises, which have long been a backbone of China's economic strength, are now facing cutbacks and stalled investments—a clear signal of deeper systemic issues at play. Recent salary cuts for financial regulators, reaching as high as 60%, serve as a stark reminder of the burgeoning crisis.