Xi Jinping loses his lustre: Chinese leader’s threats against Taiwan have soured economic relations with the West, says ALEX BRUMMER
The intriguing question about China before Covid-19 was how long would it take it to overhaul the United States as the world’s largest economy.
With annual growth rates running at between 8 per cent and 10 per cent, the crossover point was expected sometime this decade.
Circumstances have changed dramatically. Donald Trump, for all his faults, saw China as an economic, trade and security threat.
Dispute: President Xi’s crackdown in Hong Kong and threats against Taiwan have also soured economic relations with the West
His hopes of re-shoring production to the US may have been wishful thinking, but the efforts to limit technology transfer, one of the engines of productivity, have proved effective.
President Xi’s crackdown in Hong Kong and threats against Taiwan have also soured economic relations with the West.
Most difficult for China has been its zero tolerance approach to Covid-19. The frequent lockdowns and interruptions to global supply chains have brought output down with a bump.
As a consequence, China is in the unusual position of fiscal and monetary easing, while much of the rest of the world…
