Despite its economic downturn at the beginning of the year, China has seen a recovery beyond that which economists had envisioned, and is now in a leading international economic position, surpassing other formerly-strong economies who continue to struggle (1).
With effective policies firmly in place (2), and government intervention aimed at stemming systemic risks and ensuring stable capital markets (3), China is receiving strong support both domestically and internationally (4). The automobile market has also shown strong recovery; another indicator of a healthy economy (5). On the flip side, China is also facing some major debt and misallocation issues (6), and a growing housing bubble that could spell trouble (7). China has also instigated a new tax on its citizens living abroad, with charges reaching as high as 45% (8). A potentially major risk factor to keep in mind is loan growth, which, if it continues to slide, is an indication of the real economy not being adequately financed (9).
Relations between China and the US continue to be strained with a lot of political tit-for-tat being played from both sides (10). Renaming the game from one of conflict of interest to one of “ideological competition”, the US is attempting to switch public focus more towards China’s politics rather than its business interest (11). Despite this, China continues to play the international political field, strengthening its ties across Asia (12), Europe (13), and particularly, towards the Middle East (14).