Beyond the cyclical difficulties, China is likely to see a secular slowdown in growth. There will be short-term pain for the rest of Asia due to the negative spillovers.
Contracting import demand in China will hurt growth and currency stability in the rest of Asia. However, there are signs of resilience despite the trade slump.
The medium-to-long run implications may be more benign if other Asian economies can benefit from the restructuring of supply chains and trade linkages.
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