Part 3/9:
Assessing the Current Economic Climate
Experts now contend that China's economy is in a precarious state, perhaps even contracting rather than growing as official figures suggest. A closer examination of data points, like tax receipts down 3.5%, contradicts the official narrative of a 5.4% growth in the first quarter. Deflationary indicators and decreasing industrial output foreshadow a dire outlook.
The US has introduced a sweeping 145% tariff on Chinese goods. This escalates pressure on a regime that relies on trade, and the implications are stark: many factories can no longer sell to the US market, leading to closures and layoffs, exacerbating the economic crisis.