China's Economic Downturn

China's economy is experiencing a downturn, marked by declining manufacturing, decreased exports, and low foreign direct investment. The decline is not solely due to zero COVID policies or President Xi Jinping's leadership, but rather a combination of factors including a slowdown in economic growth, skill set mismatch, and reduced job opportunities. Chinese youth unemployment is a major concern, with unofficial estimates suggesting it could be as high as 45-50%. Additionally, China's rapidly aging population poses challenges for supporting their welfare and pension systems. While the economic slowdown may not threaten Xi's hold on power, it could strengthen nationalist sentiments and potentially lead to a more assertive foreign policy. Despite the challenges, China still has the capacity to invest heavily in its military and continues to have room for cooperation with the United States on various issues, such as climate change. However, the timing and willingness to engage in dialogues may be affected by factors like upcoming elections and uncertain political dynamics.