Summary of China’s Footprints on the Global Economy

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

China’s Footprints on the Global Economy summary
Start getting smarter:
or see our plans

Rating

8 Overall

8 Importance

7 Innovation

8 Style


Recommendation

When the Chinese economy sneezed in 2015, the rest of the world risked catching a cold, with an ensuing fall-off in global commodity prices and talk of recession. While the global economy has since moved on, the threat of a potential China-led worldwide recession is not yet fully in the past. The Federal Reserve’s Shaghil Ahmed spells out, in a succinct and balanced manner, the effects a severe slowdown in Chinese growth could have on the United States and other nations. getAbstract recommends this finely crafted take on Chinese risk to investors and executives. 

In this summary, you will learn

  • What threats plague the Chinese economy,
  • How a severe slowdown in China could affect the global economy and 
  • What Chinese authorities can do to mitigate the risks.
 

About the Author

Shaghil Ahmed is an associate director in international finance at the Federal Reserve.

 

Summary

The Chinese economy is confronting some risks that have the potential to spill over to the rest of the world. An “exogenous 3% shock to Chinese real GDP” would have had little impact on other emerging markets during the 1981–2005 period. However, since 2006, when China became a critical point in the Asian value chain, any Chinese financial distress would have almost an equivalent economic effect on developing countries. China also exerts a much larger influence on global financial markets today.


More on this topic

Customers who read this summary also read

China’s Future
China’s Future
7
World Economic Outlook April 2016
World Economic Outlook April 2016
7
World Economic Outlook October 2016
World Economic Outlook October 2016
8
World Economic Outlook April 2017
World Economic Outlook April 2017
7
The Rise and Fall of Nations
The Rise and Fall of Nations
7
The China Triangle
The China Triangle
7

Related Channels

Comment on this summary