China's Economic Struggles: A Global Test

China's economy is facing significant challenges as its growth stalls and concerns over a real estate crisis deepen. The country's economic slowdown has alarmed international leaders and investors, with Hong Kong's Hang Seng Index sliding into a bear market and the Chinese yuan falling to its lowest level in 16 years. A lack of resolute measures to stimulate domestic demand, along with fears of contagion, have led to growth downgrades by major investment banks. Debt defaults by major homebuilders and investment companies have further heightened concerns about financial stability. Additionally, China is grappling with a population crisis and strained relations with key trading partners, which pose long-term challenges to its economic growth potential.