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Understanding the Chinese Economic Slowdown

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After rising for six consecutive years, U.S. stock markets have been in danger of falling into bear market territory. Investors, financial planners and economists agree that fears of a slowdown in China’s economy are largely to blame for the stock market maelstrom.

China’s mammoth economy is slowing down, causing jitters among investors and policymakers, says economics professor Robert Mead. China has had “an extended period of double-digit growth, but there’s a limit on how long this growth can last. The country’s labor cost advantage is shrinking and the Chinese population is aging, which hurts an economy based on exports.”

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