The Evergrande Scandal and the Slowing Chinese Economy

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The Evergrande Scandal and the Slowing Chinese Economy
           Understanding the intricate yet complex connections between various market factors is essential for any investor. It allows him to better grasp how external and internal circumstances could affect a company's profitability, the global economic system, and his own investment decisions. Accordingly, this article would focus on another immediate and widescale issue facing the global economic landscape today – the Evergande Issue and the Slowing Chinese Economy. Initially, I would be summarizing Bradsher and Stevenson’s (2021) article entitled Beyond Evergrande’s Trouble, a Slowing Chinese Economy from the New York Times. Subsequently, I would discuss the various financial terminologies and their importance for State economies and eve for businesses and industries today.
Defaults and Economic Slowdown
           The Evergrande issue stemmed from the impending risk of default of China's Evergrande Group due to a debt amounting to $300 billion. The Evergrande Group is one of China's largest real-estate developers and is facing a massive risk of default because of its impending bond payment towards its creditors, including State. Although the company was able to restructure some of its debt obligations, including its deadline for the payment of its bond obligations, investors all over the globe are still wary especially considering (1) China's Economic Slowdown in various related industries and (2) the State's choice of economic policies. 
           On the one hand, Bradsher and Stevenson (2021) noted how economists and investors around the world have become wary of the slowing growth of the Chinese economy. For example, retail and car sales in China experienced a significant decline, whether domestic or abroad. This suggests vast risks considering the fact that the automobile industry is one of the State's largest industries, which is "nearly three times as large as the role of exports to the United States" (Bradsher & Stevenson, 2021).
Additionally, truck and freight sales have also experienced a significant reduction in sales due to Covid-19 Pandemic since real-estate and other related industries worldwide tend to reduce their purchases when they foresee impending risks and dangers in the international economy. This is suggestive of economic growth since trucks and freights are heavily used for almost every kind of industry and since truck and freight purchases are an indirect representation of the infrastructural developments of the State. This is the reason why Alan Greenspan, the former head of the United States Federal Reserve, has used this as one of the primary indicators of the strength of the State's economy. However, because truck sales have plummeted by nearly half of its usual sales, this highly suggests that a slowdown is indeed happening in the Chinese economy.
On the other hand, investors are also questioning the choices made by the Chinese government regarding the economic policies of the State. Considering the slowdown in the Chinese economic growth and the impe...