Despite the Biden administration's humiliating displays of homage to the bureaucrats in Beijing, the Chinese Communist Party may very well need the grace and favor of the West, and the United States in particular, more than we need them. Despite Chinese President Xi Jinping's hopes that relaxing China's draconian COVID lockdowns would spur economic renewal, Asian markets tumbled upon the news that Chinese economic expansion stagnated to just 6.
First, just take the 12.5% drop in the value of the yuan against the greenback. Whereas China's central bank has tried to juice economic growth to no avail, the Federal Reserve's monetary tightening has coincided with a boom of the U.S. dollar without significantly threatening our economic growth or historically low unemployment rate. But the bigger picture of economic projections tells a greater story of the CCP's poor choices.
But earlier this year, the Economist reported an astonishing prediction from Capital Economics: China's GDP, which will peak within the decade, will never outsize the U.S. economy.