China’s economy will take a hit of $5 trillion dollars: US based economist claim

Washington: – The Zero Covid policy implemented by President Xi Jinping in China for the past few months along with the real estate crisis are going to affect the Chinese economy. There is a possibility of China’s economy taking a hit of five trillion dollars in the coming five years when Xi Jinping will continue to be in power for the third consecutive time. US based economists have warned of negative effects on the global economy. International think tanks and senior industry experts are also expressing similar concerns about China’s economy.

Xi Jinping, after assuming the presidency for a third term, announced a financial package to revive the stressed real estate sector. Media controlled by the Communist Party in China and Hong Kong welcomed President Xi Jinping’s decision. The Chinese media claimed that this will remove the deadlock in the economy and once again be on course to achieve its economic growth. However international economists and senior executives of big companies expressed that these steps would not be able to stop the decline of the Chinese economy.

Ten years ago, when Xi Jinping came to power there was a favorable economic environment in China which propelled the economy at an annual rate of seven percent. However, Nils Graham, director of the Geo Economics Center at the Atlantic Council, a US-based think tank, has highlighted that the situation is not the same today. Graham warned that China’s growth rate will not even reach the planned target during the next five years of Xi Jinping’s tenure, the first time this has happened to China since 1989, and the country’s economy will suffer a sharp decline.

China has officially claimed that its country’s growth rate has slowed down due to its strict zero covid policy. But there are other factors responsible for the crisis in China’s economy, Graham said. Evergrande-like real estate crisis, rising unemployment adding strain on the country’s exchequer. It is not true that China’s economy slowed down only after the Corona crisis. Graham reminded that China’s growth rate had slowed down before the Corona outbreak and before the implementation of the Zero Covid policy.

At the same time, although China is progressing as a superpower, China’s development in important areas like digital commerce is slow, Graham claimed. While other countries’ economies have been making strides in digital commerce, Xi Jinping’s regime has imposed many restrictions on the sector over the past eight years. Because of this, China’s ranking in digital commerce has also collapsed, Graham said. At the same time, the US economists have realized that China has lost the confidence of foreign investors in the last few years.
The CEO of the international company Emirates Shipping claimed that China has weakened its position in the global economy by implementing a strict zero Covid policy.