The Power of China’s Economic Growth: A Rising Tide or a Sinking Ship?
According to the Financial Post, the IMF predicts China’s growth rate to reach 4.5% in 2025, despite several measures taken to boost the country’s economy, such as increased net exports and additional funds. China’s challenges extend beyond its borders, as its ongoing trade war with the United States has resulted in new tariffs imposed by both nations, creating economic repercussions worldwide. IMF Deputy Director Gita Gopinath has drawn attention to the US-China tensions and their global impact. “We are observing geopolitically driven trade shifts worldwide,” she noted during a media briefing, adding that “while overall trade to GDP remains stable, the dynamics of who trades with whom are definitely changing.” In 2024, the number of trade tariffs between China, the EU, and the US has increased. Both the EU and the US have cited unfair trade practices and overmanufacturing by China as reasons for imposing higher tariffs, as local industry players feel disadvantaged. China h...