In their recent tracking on the economic frictions between China and Germany, United States and Japan, the research team at ANBOUND Consulting noticed that the overall economic relationship between China and the major economies in the world is deteriorating.

There are increasingly situations where the developed economies and the international markets are trying to de-chinalization and they are overly cautious of China.

The overlapping of this trend with the L-shaped economy in China will adversely affect the sustainability of economic development in China.

The trouble is, this is not just a commercial matter but it also involves both political and diplomatic issues. The geopolitics and geo-economic issues are intertwined, posing a serious challenge to China.

China should have a system in place to respond to these changes.