The Covid-19 crisis is rocking the world economy, and in the wake, no less, of an already partially underway \u201cde-globalization\u201d process. The diversification \u2013 and possible fragmentation \u2013 of the global supply chain presents a major challenge to the Chinese economy, but it is not at all certain that it will have such drastically negative effects on global growth, since there are a great many companies (including some Italian ones) interested today in breaking into the Chinese market, and Chinese companies interested in diversifying trade partnerships. Moreover, according to current predictions, China will continue to account for approximately one-third of global growth.<\/p>\n
Corporate debt is extremely high, and that could place the banking system under heavy stress as the growth rate slumps (predicted today to drop to under 2%, therefore below the country\u2019s demographic growth rate). Nevertheless, this level of indebtedness is less of a concern than for other countries, given that the majority of it is held by China. However, the government is going to have to make domestic market stability a priority, even as efforts to boost Italy\u2019s presence in Asia go forward \u2013 both trends that were already visible prior to the pandemic. Meanwhile, detachment from the dollar, although still incomplete, will also serve to lay the groundwork for an Asian monetary pillar under Chinese leadership.<\/p>\n
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