As a rule, the United States openly expresses its opinion about various issues. This time is no exception. The US president pointed out problems in the Chinese economy and called it a ticking time bomb.
Meanwhile, in China, such statements may have pitiful consequences. That is why markets usually rely more on the estimates of independent analysts than on official data. Judging by official reports, the situation in China is always under control. However, there are confirmations that the government overestimates economic indicators. That is why analysts have to evaluate the real economic situation in China based on various events. Curiously, the US makes quite reliable assumptions about its rival. Thus, the recent figures are not very encouraging. While Beijing admitted just some difficulties in the economy, the White House said that "China is a ticking time in many cases" because of its economic challenges. Joe Biden also added that "the country was in trouble because of weak growth." Notably, in China, mass media are prohibited from publishing economic failures and negative data. There, everyone is talking about the economic recovery after the lifting of quarantine restrictions. In fact, the situation is disappointing, as the pace of recovery is weak. In addition, the overall situation is aggravated by alarming demographic problems.
At the beginning of 2023, China lifted restrictive measures aimed at curbing the pandemic's spread. However, according to the latest data, in particular, on the consumer price index, deflation began in August, reflecting a decline in consumer demand. At the same time, China's youth unemployment rate reached 21% in July due to a shortage of highly skilled and well-paid jobs.
