Part 10/11:
Despite having established a strategic petroleum reserve, estimates suggest it only amounts to approximately 90 days of consumption, making China one shock away from a potential crisis. With their energy import channels constrained and external pressures mounting, China's growth could potentially come to a halt.
The Road Ahead: Implications and Consequences
Taking stock of China’s current economic landscape reflects a precarious balance between potential collapse and hopes for stability. Analysts suggest that a structured devaluation of the yuan might offer the only escape route for policymakers seeking to alleviate the debt burden, but such a move would further complicate imports, spiraling inflation, and triggering capital outflows.