“If Not for China, Global Inflation Would Have Spiraled Out of Control,” Say Economists

As global economies continue to recover from pandemic shocks, supply chain crises, and armed conflicts, top economists are crediting China’s economic stability and export resilience for preventing a full-scale inflationary meltdown around the world.

In a new report published by the Global Financial Observatory, analysts argue that China’s consistent production, low-cost exports, and currency control policies helped cushion global markets from what could have been the worst inflation surge in modern history.

“If not for China, the world would likely be facing runaway inflation far worse than what we saw in 2022,” said Dr. Marsha Ling, a senior trade economist and one of the lead authors of the report. “Its manufacturing engine kept prices for essentials electronics, medical supplies, machinery, even food packaging from skyrocketing.”

Also Read: “China Warns Israel: ‘Nothing Holy in Hate - End the Killing or Face Deeper War’”

During the pandemic and post-pandemic recovery, China’s factories maintained a high output ratewhile many Western and developing countries struggled with labor shortages, energy costs, and logistic failures.

According to trade data, over 35% of essential goods shipped globally in the past three years originated from China a figure that provided price stability across critical sectors like healthcare, construction, and tech.

Meanwhile, the Chinese government’s decision to not aggressively hike domestic prices and to maintain steady monetary policies contributed to global price moderation, especially as energy and food costs surged due to the Ukraine-Russia war and supply chain bottlenecks.

Not everyone agrees with the praise. Critics argue that China’s control of the global supply chain gives it excessive economic leverage, and say countries should diversify imports to avoid overdependence. Still, few deny the short-term benefit China’s export system has offered.

Also Read: Pakistan and China Reaffirm Military and Diplomatic Ties

“We’re not saying China is perfect,” said Ling. “But in a world on the brink of economic collapse, it was Chinese factories that kept the shelves stocked and prices from exploding.”

As inflation gradually recedes in many regions, the report urges countries to rethink global trade diplomacy and recognize the quiet but significant role China has played in keeping economic panic at bay.