Wednesday, April 27, 2022

The Chinese Economy is enfeebled by Zero Covid Policies (which is also causing foreign investments in China to leave)

 The US Federal Reserve is increasing interest rates for the first time since 2018 to tame inflation, while the People's Bank of China has entered an easing cycle to bolster its faltering economy. That means China looks less attractive to investors when compared with the United States. Earlier this month, yields on China's 10-year government bond fell below US Treasury yields for the first time in 12 years. And the yuan hit a six-month low against the US dollar.

"The rise in interest rates, especially in the US, makes the nominal return associated with Chinese fixed income assets less attractive on a relative basis," Chorzempa said.
Furthermore, Beijing's unwavering commitment to its zero Covid policy has taken a massive economic toll, and increased uncertainties about future growth.
"The economy is enfeebled and being made worse by government actions and by zero Covid policies," said Magnus.
end partial quote from:
https://www.cnn.com/2022/04/25/investing/china-capital-outflows-covid-ukraine-war-intl-mic-hnk/index.html
What Russia is doing in Ukraine is seriously harming and undermining China but also China is shooting itself in the foot so it cannot walk by Zero Covid Policies which creates a complete disaster for China.
It's almost as if Russia attacked China strategically by attacking Ukraine. Putin might have thought he had nothing to lose but China had everything to lose from Omicron and from Putin Attacking Ukraine.
So, I'm thinking Putin attacked Ukraine in this way to bring down China while China was the weakest it has been recently caused by self inflicted wounds from Zero Covid policies. I presently believe Putin's attack of Ukraine was to bring down China economically because it was too big a threat to Putin personally and his power base in Russia.
Because in the end Putin's biggest threat is not Nato or the western world but China's wealth and Army. This would be how Putin ultimately would see it with the history China and Russia have had down through the centuries sharing borders there in Asia.
The biggest threat to Putin was always China not the Western world.

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