Russia-Ukraine war will impede China’s economy

Significance

China’s exporters face deteriorating global economic conditions and international freight upsets. China is also tackling COVID-19 and real estate problems. The multiplication of downside risks could throw the economy badly off course.

Impacts

• China’s exports will fall and imports rise in value terms, reducing the trade surplus.
• The crisis will force Beijing to review the economic risks it faces from integration into a global economy.
• The Ukraine war has thrown a spotlight on significant political risks for China’s economy that are beyond Beijing’s control.