China suspended stock market trading for a second time Thursday, after stocks freefell 7 percent in just 30 minutes of trading.
In its wake, stock markets around the world also plunged. The Dow and the Nasdaq both saw massive selloff, but have since recovered some of the losses after China announced that it’ll suspend its recently-implemented “circuit breaker” system, which has been used by regulators there to stem market volatility in the country.
China’s latest stock market trouble reflects a greater fear that the second-biggest economy in the world is slowing down and that a “hard landing” is all but inevitable.
Are these fears overblown? What are the underlying factors behind China’s economic slowdown? How would China’s economic troubles play out in the US and the rest of the world?
Edwin Truman, fellow specializing in Asian economies and the IMF at the Peterson Institute for International Economics. He served as assistant secretary of the US Treasury for International Affairs from 1998 to 2001
Carl Riccadonna, Chief US economist at Bloomberg Intelligence