China’s Banking Crisis Could Ripple Through the Global Economy

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The banking system in China is beginning to collapse, and as this happens, there’s growing concern it could have a ripple effect—not just in the Chinese markets, but also throughout the global economy. In a single week in June this year, 40 banks in China disappeared. The Chinese Communist Party’s (CCP) proposed solution to this will make investment in China less appealing to investors, especially at a time when many are already “de-risking.” Meanwhile, firms that have tried showing what’s happening with the Chinese economy are now seeing themselves targeted by the CCP. And all these incidents are raising growing questions over the stability of the economy, and what it could mean for the world. We’ll discuss, in this episode of Crossroads.