In 2022, the Omicron variant of Covid-19 broke through China’s defenses, leading to failed lockdowns and a departure from zero-Covid policies. This, along with strained US-China relations, has hindered China’s economic recovery. Despite efforts to stabilize ties, the situation remains tense.
The Chinese economy is struggling, with focus on advanced manufacturing and technology. However, consumption lags behind, leading to unbalanced growth. Incremental measures have been taken to restore confidence, but a bolder approach is needed.
China is increasingly reliant on exports for growth.
Perceptions between the US and China have hardened due to nationalism. Efforts to improve mutual understanding include increasing flights and student exchanges, but obstacles remain due to visa issues and censorship concerns.
The upcoming US election raises concerns in China. While potential benefits may exist under a Trump presidency, unpredictability poses risks. A stable international environment is crucial for China’s economic challenges.