The West is Shifting Away from China
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The West is seeking new opportunities in Asia as President Xi grows closer to Russia's Putin.
President Xi has designs on a new global balance of power centred on BRICS (Brazil, Russia, India, China & South Africa), with Saudi Arabia looking likely to join the economic group, in addition to it's Belt & Road initiative increasing its influence across the globe.
What does this mean for the West?
Broadly the West as a whole is stepping back from China having been reliant on Chinese manufacturing for decades.
That means there are new opportunities opening up in the Middle East, India & South East Asia as the West seeks new partners.
India is now playing an increasing role in manufacturing parts for Western countries due to US sanctions against China.
President Biden has recently travelled to Vietnam in an attempt to improve relations.
The UK have also agreed to join the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) - a trade agreement countries including Japan, Vietnam, Singapore, Malaysia, Australia & New Zealand.
Meanwhile in China the economy is stagnating with vast ghost cities and no buyers in sight. Their main construction companies Evergrande & Country Garden are struggling to service their debt and could very well collapse by the end of 2023.
China is also facing a huge population collapse over the next 75 years, with India already overtaking it as the worlds most populous country which could mean ever decreasing tax revenue & flat economy.
Since the early 90's the Chinese economy has achieved huge & stable growth ranging from 7-14% per year. But this has tapered off & steadily declined in recent years as the economy matures with only around 3% growth so far in 2023 - a figure comparable to advanced Western economies.
With a deflationary economy, population collapse and increasing isolation from a huge customer in the West it would be easy to surmise the outlook is bleak for China.
And that spells opportunity for the West.
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