US-Iran War Threatens China's Economy: Rising Costs, Stalled Growth Loom

• US-Iran conflict poses a serious crisis for China, potentially trapping it in a 'cost-push inflation' spiral.
• Rising energy prices and raw material shortages are crippling China's manufacturing sector, increasing production costs.
• Despite global oil price surges, Chinese companies may absorb costs, impacting wages and new hirings, not passing them to consumers.
• China faces stagnant wage growth, high youth unemployment, and reduced consumer spending, weakening demand.
• Economists warn that sharply rising oil prices could significantly impact China's GDP growth and exports, leading to a decline.