Preface:
At this point in the world almost every day there are events that affect the world economy in one way or another, and this article will probably be filled with more details as time goes on. Generally speaking, there are problems everywhere and they are not getting any smaller. We are facing serious changes, to which we will come through the financial, energy and food crises. However, at the moment these clouds don't hang over us, they just loom over the horizon and let's hope that at least some of them will be blown away by the wind of change.
I decided to divide this article into 4 parts, because there is more information than expected. In each of the parts we will talk about individual countries, the main players in the political-economic arena, which will reflect plus or minus the general state of affairs and so to say the
temperature of the "chamber".
Global escalation of the crisis in China
China has a huge logistical problem due to another blockage of the Wuhan Covid-19. With about 500 container ships piled up in the waters near China, the global consequences are not long in coming, because no matter what the containers contain, they cannot get into or out of the country, and given that most of the world depends on goods produced in China, the consequences for the global economy will be extremely serious.
On top of this, again because of the Covid-19 outbreak, many large factories are closing and entire cities of 17.5-25 million people are being isolated. Of course, production will gradually be partially restarted, but this is again a colossal damage to the entire global supply chain.
On top of that, global stocks fell on fears that a coronavirus outbreak in China could lead to more widespread closures like the one in 2020.
As an example, the Shanghai composite fell 5.1% (marking the biggest daily drop in the index since February 2020), while the Hang Seng lost 3.7%.
Taiwan
The situation around Taiwan is gradually escalating. After the U.S. delegation arrived on the island, just a few hours later, Beijing announced a full-scale military exercise in the East China Sea, the Chinese army sent frigates, bombers and fighter jets and conducted multi-role joint alert patrols in the sea and airspace around Taiwan.
The warning, we believe, has been understood clearly enough.
That is all for now with China, if you are still full of enthusiasm and want to continue to understand the economic situation, I suggest we move on to the next part of this article, where we will talk about the United States.
Keep your nose in the wind Friends and may fortune always be with you ;)
Always yours, C.J.
