China’s Economic Slowdown: Root Causes and Implications

China is a key part of the global economy. Yet there’s a sense that obstacles to its rapid development over the past 25 years are becoming increasingly common. Economic activity has not been spared by the pandemic, as shown once again by recent lockdowns. This Economic Viewpoint takes a look at the recent challenges facing China’s economy, the factors set to affect domestic demand and its longer-term outlook. For now, the country’s economic turmoil is hurting its standing as a global supply chain leader more than it’s hurting exports to China.