Global economic prospects are grim, warns the World Economic Forum's president. High debt levels, inflation, and geopolitical tensions pose threats. Developing nations may benefit from artificial intelligence, but it's crucial to avoid a trade war and excessive debt that could lead to recession.
US Treasury Secretary Janet Yellen is visiting China for meetings with officials on issues like trade and industrial overcapacity. She hopes to improve communication between the two countries, which have had a strained relationship. Yellen will specifically address China's export strength and its impact on global economies.
Tensions between Europe and China are growing as China's industries produce goods more cheaply, leading to fears that European industries will struggle to compete and could face severe losses. This overproduction in China can result in price wars and ultimately threaten the stability of the European economy. Europe is China's largest regional trading partner, and experts worry that the situation could worsen as China promotes high-end manufacturing to boost its self-sufficiency.
