China was at the forefront of the COVID-19 crisis. As a consequence, the value of Chinese exports plummeted by 13% year-on-year at the first quarter of 2020.

China has become one of Russia’s main trading partners over the past ten years, leading to a significant diversification of Russia’s oil and gas export markets.

China has had huge difficulties to come even close to fulfilling its import commitments, which were consider to be hard to meet even before the coronavirus crisis.

After a sharp decline in January and even sharper decline in February, the Chinese economy started to recover in March.

The summary provides a simple introduction to the assessment of developments in the global economy and monetary policy presented in the March edition of the Bank of Finland Bulletin.

The long-anticipated slowdown of the Chinese economy is natural for an economy that has grown rapidly for several decades.

How would a rapid but controlled restructuring of China’s economy or a sudden halt to debt-driven growth affect the Chinese and euro area economies?

In many countries, a rapid rise in debt has led to financial sector problems and a pronounced slowdown in economic growth. In China, too, sustainable management of the public finances would require a slowdown in the pace of debt accumulation.