Chinese stocks have fallen to their lowest level in more than a year, as the economy slows and worries over the impact of the ongoing Lunar New Year holiday have sent investors looking elsewhere for safe havens.
China’s stocks have plummeted by more than 2% this year, the steepest drop since mid-2014.
China has been the world’s biggest trading partner of the United States for decades, and it is one of the most influential economies in the world.
China is the world champion of tech, entertainment and sports.
China is currently one of America’s biggest exporters of luxury goods and services.
It has also become the biggest market for U.S. companies, accounting for half of all U.K. companies in 2019, according to data from Euromonitor.
Investors are also concerned about the potential impact of China’s Lunar New Years holiday on the country’s economy.
China has traditionally had a relatively tight grip on economic growth and it’s a big concern for the U.W. that it is a potential source of growth, said Michael Lee, a professor of management at the Wharton School at the University of Pennsylvania.
The Lunar New year has been an economic boon for the Chinese economy, but many analysts have been questioning the extent to which China is able to maintain this momentum, he said.
In an effort to rein in growth, the government has eased the pace of fiscal stimulus and eased monetary policy, including tightening its monetary stimulus in the first half of 2019.
China also has increased its purchases of state-owned enterprises and infrastructure.
China’s stock market has also risen.
China-based U.N. figures released Thursday show China’s GDP grew at a 7.4% annual rate in the fourth quarter of 2019, compared with 7.1% in the same period last year.
That’s down from 8.4%, the most recent data, but still a significant improvement.
The government has promised to boost investment by 3.5% a year for the next two years.
China remains one of many countries around the world where growth is slowing and economic inequality is rising, but that is also one of its strengths.
China, however, faces a number of challenges, including a lack of infrastructure and consumer spending.
The economy is still struggling to catch up with the rapid expansion of the rest of the world, according the United Nations.