China's economy is on the verge of collapse

On April 7, 2025, the Chinese stock market experienced its steepest decline since 2008. According to SAHWA, the country's Hang Seng Index fell by 9%, while the Shanghai Shenzhen Index (CSI300) fell by more than 5%.

According to Meduza, the main reason for this crisis is the trade war, which has entered a new phase: the US has sharply increased customs duties on Chinese products, and China, in turn, has responded with tariffs of 34%.

As a result, shares of major banks — HSBC and Standard Chartered — fell by up to 16%. The yuan also weakened, sparking a wave of panic in global financial markets, according to media reports.

Analysts say this situation has also dragged down European stock indexes. The leading index of the London Stock Exchange, the FTSE 100, also fell by 4.4%. Oil prices and cryptocurrencies have also fallen significantly.

Analysts at the US bank Goldman Sachs also believe that the probability of a temporary economic downturn (recession) in the American economy in the near future has increased to 45%.