Source: Foundation for Economic Education
by Jake Scott
“For China, the world’s second-largest economy, the past year’s economic fortunes have been characterized across three dimensions: declining domestic demand; increased tensions in the Pacific; and strategic repositioning in the Middle East. Each of these dimensions have combined to force China to re-evaluate its longstanding economic policies. The ways in which China has come under pressure from, and responded to, the tariff policies of President Trump has led to some diagnoses of China as being on the verge of collapse due to a headline of slowing growth. In reality, the industrial nature of the nation remains high …. However, as Damian Ma and Lizzi Lee explained for Foreign Affairs, China’s role as the workshop of the world is under question as it attempts to balance its economy and encourage domestic demand in the face of declines at home.” (01/14/26)