Despite recent signs of economic weakness and difficulties in the real estate sector, particularly in relation to Country Garden, a significant nonstate-owned developer that has recently struggled to make bond payments, Jim Cramer, a well-known CNBC commentator and financial expert, expressed optimism on Thursday regarding the resilience of China’s market.
Cramer stressed that history has shown that such fears are overdone in reaction to the idea that China’s economic difficulties would have an impact on the whole world, including repercussions for the United States. He said, “Now we’re hearing that China’s going to bring down the rest of the globe, including us. That sounds like a similar story. However, we have already watched this movie and know how it ends.
Cramer’s viewpoint is based on his conviction that China’s economic failures, including difficulties encountered by businesses like Country Garden and underwhelming GDP data, won’t cause the Chinese market to completely collapse. He cited examples from the past, including the year 2015, when the Chinese market crashed but finally recovered.
While admitting the importance of the current problems, Cramer is optimistic that the Chinese leadership will take action to deal with and fix them. According to his analysis, these problems’ scale and extent are insufficient to topple China’s economic system as a whole.
But I can tell you what’s not going to happen – China’s not gonna collapse,” Cramer said as he put an end to his analysis. Even if such institutions are sizable, the whole dictatorship cannot be overthrown with them. He stands by his belief that China’s economic system would be able to weather the present storm and steer itself toward stability and recovery.
