In recent years, China has made one of the most remarkable transformations in history—from a poor, unstable nation into an economic giant. Since 1978, more than 500 million Chinese—nearly one third of the country’s current population—have been lifted out of poverty. Experts predict that by 2026, China’s economy will replace America’s as the world’s largest.
Yet China today is in the midst of an economic slowdown and facing monumental changes. A construction boom of skyscrapers, houses, and other projects has slowed. Some of the many manufacturing jobs that had moved to China from other countries—possibly millions from the U.S. alone—are leaving for places such as Vietnam where labor is cheaper. Businesses are firing workers and closing factories. Companies that borrowed lots of money are struggling to pay their debts.
The impact of the slowdown is also being felt far from the country’s borders. In August, a one-day plunge in China’s stock market sent shock waves worldwide. Many of the U.S. companies that do business in China have been watching the situation nervously.