China Recession 2015 and 2016

China is exporting something new to the world economy: Fear. 

Global investors are quaking over the prospect of a devastating slump in the world's second-biggest economy. And they're fast losing confidence that China's policymakers, seemingly so sure-footed in the past, know how to solve the problem. 

The worst-case scenario is that a collapsing Chinese economy would derail others around the world - from emerging markets in Chile and Indonesia to industrial powers such the United States, the European Union and Japan. 

Here is the query among recession period 2016 too:

• What if China's slowdown further reduces oil prices, igniting an economic and budget crisis in energy exporter Russia? 

• Would President Vladimir Putin be tempted to distract his people by stirring up more trouble in Ukraine? 

Greece accounts for just 2 per cent of the eurozone's economy. Yet a Greek budget crisis has ignited fears that the country would be forced to abandon the euro, possibly leading to breakup of the eurozone. 

"Here's this utterly unimportant economy, which is managing to paralyze European policymaking," says Harvard University economist Kenneth Rogoff. 

If Greece can threaten European unity, imagine the potential fallout from a crisis in the world's No. 2 economy. No wonder investors are freaking out. 

Courtesy: TOI, Forbes, Business Times