Chinese Economy In Distress

Chinese authorities have acknowledged the exhaustion of their previous growth model, which had been effective for four decades. A report states that China's once successful growth strategy is now considered "broken."

According to The Wall Street Journal, economists suggest that China, is entering a phase of slower growth due to unfavorable demographics and strained relations with the US and allies, impacting investment and trade.

As per the report, China's total debt, which includes government and state-owned company debt, reached almost 300% of its GDP by 2022.

According to the Chinese National Bureau of Statistics (NBS) in June, the country’s GDP grew 5.5 per cent year-on-year in the first half (H1) of 2023.

Legendary investor Ray Dalio, a big enthusiast and investor in China, said the world's second largest economy is overdue in conducting a "big debt restructuring."

Bridgewater Associates, Dalio's $125 billion hedge fund where he's on the operating board, invests in China and provides funds for Chinese investors as well.

In the past year, Bridgewater increased its fund assets in China to over 20 billion yuan ($2.74 billion), solidifying its status as the largest foreign hedge fund in the nation.