Like Japan, will China risk losing its own decade? CEO of alcohol giant warns

Chinas economy may be looking quite strong and promising at the moment, but recession fears, along with rising inflation levels, are putting the world markets in grave concern. Meanwhile, there are fears around China's geopolitical relations with countries like US, Russia and others, that may be directly impacting the economy of the country at this point. Especially in the US, when the change of arms happens after the US elections in November, there is no saying as to where the trade relations between the United States and China will lie, which is leading to much more uncertainty and fear in the world markets.

Japanese whiskey brand boss lays his opinions

Suntory Holdings CEO Takeshi Niinami is of the opinion that China is currently at its 'tipping point' and may follow the footsteps of Japan, when it had ended up bursting its economic bubble in the 90s, that had led to a deflationary period of nearly three decades. If the same happens with China, there is no saying how badly the national economy as well the word markets are going to be affected.

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Suntory owner skeptical of Chinese economy?

Suntory currently owns a major portion of the alcohol manufacturing market in the world, also having acquired Jim Beam as part of a $16 billion acquisition, back in 2014. According to Niinami, the deflationary circumstance could be because of the fact that the Chinese do have money and are not willing to spend it, leading to an imbalance in the economy, and an unhealthy economic flow. Moreover, he has also referred to this circumstance as an 'invisible monster' doing the rounds, and can show its might at any time, leading to a major impact in the world markets.

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FAQs:

Is China heading towards a recession?
Economic outlook shows that the Chinese economy is looking quite likely to go into a period of recession, but there are yet no confirmations about the same.

Are there chances of the US markets being affected due to the Chinese economy?
As China has extensive trade relations with the United States, and both countries are quite dependent on each other in this way, any country's economy getting affected could indeed impact the other.