China's economy in focus: How trade with the Middle Kingdom is developing and what effects this has on the global market.

China's economy in focus: How trade with the Middle Kingdom is developing and what effects this has on the global market.

According to a report by www.rnd.de, the Beijing Statistics Office is sending mixed signals with the latest economic figures from China. Although foreign trade fell by 2.5 percent in October compared to the same month last year, imports exceeded economists' negative forecasts and rose by 3 percent.

This development reflects the geopolitical power shifts that divide the global community into two rival spheres of influence. Russia in particular has caught up in trade relations with China and has overtaken Germany as a Chinese trading partner. This change goes hand in hand with economic exchange with Germany, which has fallen by over 12 percent in the last twelve months.

Nevertheless, the statistics are misleading because German companies are increasingly producing locally. The development of China's foreign trade is also political in nature and leads to two different economic cycles that compete with each other. China is increasingly orienting itself towards the global south and investing primarily in resource-rich states in the Middle East and Southeast Asia.

The sheer scale of the turnaround became clear most recently when the National Foreign Exchange Administration released its data: China's so-called direct investment liabilities have slipped into the red for the first time since records began 25 years ago. Economic polarization leads to wasted growth potential on both sides.

This development also has an impact on the market and the financial sector. Trade between China and the West is shrinking as China increasingly orients itself towards the global south. This is leading to polarization between China and the West and two rival spheres of influence. These changes may lead to a realignment of trade relationships and investments and require an adjustment of strategies in the financial industry and the market.