The impact of the financial crisis on China and the United States

Updated on Financial 2024-02-09
9 answers
  1. Anonymous users2024-02-05

    The U.S. economy is currently in the midst of a full-blown financial crisis, which has led to many banks on the verge of collapse due to losses. The banking industry is generally more concerned with balancing its balance sheets, leading to a borrowing crunch or even a drying up of borrowing, the inevitable consequence of which is that the US economy falls into recession. Now that we are entering a recession, the United States** is taking steps to inject capital into the banks and hopefully develop effective policies to end the financial crisis.

    I think the current recession will directly lead to negative growth in the U.S. economy, perhaps a negative 1% to 2% annual accumulation. The recovery will be slower then, so we will all feel the pain of this crisis for the next two to three years.

    However, there is no risk of contraction in the global economy, as the rate of world economic growth is potentially higher than the current level of economic development in developing countries. There will be a tightening of the EU economy, and a significant slowdown in growth in China and India. I think this recession will put financial institutions to the test in many countries around the world, not just in the United States and Western Europe, but also in China, India, and other countries in Asia.

    The U.S. economy has been running on huge deficits for years, and I think it's almost time for a change. This means that consumer demand in the United States will be lower at home, and Americans will shift their consumption more towards business investment and more conservative financial strategies. The main impact on China is that consumer goods exports to the United States** will decline, while American companies will continue to invest in China.

    Because exports to the U.S. have declined or the growth rate of exports has slowed, I think China's economy needs to adjust accordingly.

    If we look at the next 20 or 30 years, you will see that China's economy is getting closer and closer to the level of the United States. As you watch China catch up with the U.S., you'll see a shift in China's economic center of gravity from manufacturing to services, just as the U.S. and Europe have experienced over the past five decades. This will make China's economy very different from what it is today.

    Instead of being a manufacturing power, it is better to become an economic power driven by high-tech innovation and oriented to consumer services.

    I believe that China should seriously think about the issue of increasing domestic demand and shrinking exports to the United States, so that China's economy can develop in a balanced way in all aspects. One aspect of this is that China should make genuine investments in moderation. If China overinvests in real estate, a collapse in the real estate market could shake China's financial system.

    Blindly optimistic estimates of rapid economic growth and excessive commercial investment will also affect the stability of China's financial system. I think China needs to think about its domestic investment strategy, such as pursuing healthy and moderate development in the real estate and business investment sectors.

  2. Anonymous users2024-02-04

    The United States is a welfare state, and a lot of money from ** and enterprises is spent on ordinary people, which is a serious problem after the financial crisis comes.

    China has tightened its spending on its people, oppressed its people, and claimed to be the cheapest labor market in the world, so the country has accumulated a lot of money and has a lot easier to deal with the financial crisis.

  3. Anonymous users2024-02-03

    The American has a great influence (he will not be flexible) and the influence on the Chinese is okay, and the Chinese are used to being laid off...

  4. Anonymous users2024-02-02

    If the United States really recurs from the 2007 subprime mortgage crisis triggering a global financial crisis, China** will inevitably directly or indirectly trigger another stock market crash;

    a review of the subprime mortgage crisis in the United States;

    The main reason for the subprime mortgage crisis in the United States is due to:Interest rates are rising in the United States and the housing market continues to cool, which caused a storm in the subprime mortgage market in the United States, directly led to the bankruptcy of subprime mortgage lenders, forced closure of investments, and a stock market crash, affecting the United States, France, China, the United Kingdom, Germany, Japan, Canada, Switzerland and other important countries were also involved in the subprime mortgage crisis storm and triggered a global crisis;

    Review of the 2008 financial crisis and stock market crash in the U.S. stock market

    The United States peaked on October 11, 2007 after 14198 and started the stock market crash mode under the influence of the global financial crisis, and the stock market crash lasted for a year and a half to bottom out at 6469 points on March 6, 2009, and then opened a nine-year bull market! This financial crisis lasted for a year and a half, and the U.S. stock market fell as much as 55%, and the so-called lethality is huge!

    Let's look back at China's ** 2008 stock market crash:

    In 2007, A-shares started the largest bull market in history, but due to the global financial crisis caused by the subprime mortgage crisis in the United States, the A-share market bull market stopped and changed to start a stock market crash. On October 16, 2007, ** peaked at 6128 points after the emergence of a continuation, a period of one year in October 28, 2008 bottomed out at 1664 points, the whole wave of 2008 stock market crash down A-shares **73%, is also the largest wave of A-shares in history, investors have suffered heavy losses!

    What will happen to China if there is another more serious subprime mortgage crisis in the United States?

    If the U.S. stock market falls by 55% year-on-year, it will fall to 11,250 points after the stock crash from the current 25,000 points; And China's ** has always been imperfect ** with the fall does not keep up with the rise**, if the 2008 stock market crash fell as high as 73% in one year, as of now A-share ** at 2828 points, the index will fall to 480 points again, this can be imagined, China's ** and the closure is no different;

    If the subprime mortgage crisis in the United States triggers a global financial crisis, China will inevitably appear, and it is unknown whether it will fall below 480 points, and I believe that the management will do its best to save the market to avoid systemic risks again; Even if China** will not fall to 480 points, at least China** will fall to more than 1,000 points; In this way, China's top investors are directly facing a sharp decline in assets, and some enterprises have cut off their capital chains and are on the verge of bankruptcy... What will happen to China, don't go, everyone understands, the probability of this kind of thing happening again is too low and too low!

    If there is another global financial crisis and systemic risks occur in the world, China will inevitably be directly or indirectly affected.

  5. Anonymous users2024-02-01

    If there is a financial crisis in the United States, what will be the impact on our country?

    Thirdly, you need to run a simulation before you do the real thing, so that your losses can be minimized.

    Fourth, it is necessary to have the basic knowledge of three aspects, and then continuously improve these knowledge in the process of speculation: one is the basic analysis method, the second is the technical analysis method, and the third is the risk analysis method.

    Fifth, you should understand that there are still many irregularities in China's current market, so you should also have some technology for China's market, such as the problem and performance of making a bank, and the role and significance of stock evaluation.

    Sixth, you should pay attention to both long-term and short-term analysis and investment training, and you can't learn all the financial knowledge just by doing it short.

    Finally, you must know that there are some financial knowledge that cannot be learned through China's ** market, so you should step up your efforts to learn other financial knowledge in addition to **, which seems to be of little use to the current **, but it may be an important part of your future livelihood at home and abroad, and achieve huge benefits.

  6. Anonymous users2024-01-31

    The U.S. financial crisis triggered an economic crisis, which had a direct impact on China's commodity exports.

    At present, China is an export-oriented economic model, mainly relying on exports to support economic growth, so the U.S. economic crisis directly affects China's economic development, and the export industry-related industries are directly affected, so a series of problems: such as employment problems, financial problems will be slowly reflected, and will also be affected.

  7. Anonymous users2024-01-30

    If there is a financial crisis in the United States, then the biggest impact may be China, because China and the United States are carrying out a large amount of exchanges every year, and the United States will not be able to buy Chinese goods after the financial crisis, so China's exports should also be reduced.

  8. Anonymous users2024-01-29

    The first impact on our country will be inflation, the printing of money in the country will also be accelerated, the purchasing power of residents will decrease, the price of everything will rise, the price of real estate will be higher, you will make more money, but you can't afford to buy more things.

  9. Anonymous users2024-01-28

    It has a certain impact on some of our companies and our own economy, because the United States has a lot of transactions with our own country, and if they have a financial crisis, it will affect the financial industry of our country.

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