Business leaders, international economic organizations and many politicians have always had a positive perception of China due to its successful track record over past 30 years. The international community has literally assumed that the Chinese leadership can “walk on water,” DWN wrote.
With regard to the possible outcome, DWN suggests two scenarios. One of them predicts an economic crash that will have a major impact on other countries such as Brazil, the US and Russia. On the other hand, the country has a relatively small foreign debt and major foreign exchange reserves of around $3,500 billion, which means that the country still exerts much control in global trade.
The crucial question is whether the central leadership will be able to undertake coordinated action and achieve relevant strategic goals, the newspaper wrote, adding, however, that its ability to act is decreasing due to the fight against corruption.
According to the DWN, the world is not prepared for an economic downturn in China. The central role of China in the world economy leads to its interdependence with other countries, affecting their stock markets and international trade.
