Globalization has transformed the global economy over the past two decades, altering trade flows and expanding supply chains. These shifts have redefined inflation dynamics, emphasizing global trends over domestic factors. This paper examines the impact of the Great European and American Inflation on China’s economy and global markets, focusing on monetary policy and economic stability. Stagnant growth in the United States, China, and the Eurozone has been exacerbated by surging inflation, geopolitical tensions. In the U.S., reduced purchasing power and restrictive monetary policies have slowed growth. China has faced its lowest GDP growth in decades due to stringent lockdowns and a real estate crisis, while the Eurozone has seen downgraded growth projections. High inflation in the U.S. and Europe has tightened global financial conditions, disrupting supply chains, raising raw material costs, and pressuring China’s export-driven economy. This paper explores China’s strategies to mitigate these shocks, including a pivot toward domestic consumption and an evolving role in global trade, offering insights into economic interdependence and China’s adaptation to inflationary pressures.

High inflation;International trade;Green energy transition

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DOI： https://doi.org/10.62639/sspjiss26.20250202

Published： 2025