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US-Iran Conflict Poses Significant Threat to China, Difficult to Escape Once Entangled
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US-Iran War Threatens China's Economy: Rising Costs, Stalled Growth Loom
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News18
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22-03-2026, 12:19
US-Iran War Threatens China's Economy: Rising Costs, Stalled Growth Loom
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US-Iran conflict poses a serious crisis for China, potentially trapping it in a 'cost-push inflation' spiral.
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Rising energy prices and raw material shortages are crippling China's manufacturing sector, increasing production costs.
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Despite global oil price surges, Chinese companies may absorb costs, impacting wages and new hirings, not passing them to consumers.
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China faces stagnant wage growth, high youth unemployment, and reduced consumer spending, weakening demand.
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Economists warn that sharply rising oil prices could significantly impact China's GDP growth and exports, leading to a decline.
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