The security blanket that Chinese expansion gave to the global economy for the past two decades is being pulled away.
Nighthawks in Guangzhou.
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It seems like the classic case of be careful with what you wish for. All manner of hopes have been expressed for China’s economy this year. At first, investors were optimistic that a big rebound following interminable Covid-Zero lockdowns would spur global growth. As it grew clearer that the bounce wouldn’t be that special, their new wish was for enough weakness to force policymakers to inject stimulus. On several occasions over the last two decades, a big release of credit in China has raised boats across the world.
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