Tag

Growth Model

All articles tagged with #growth model

economy16 days ago•13 min saved

China’s Growth Gamble: Innovation, Exports, and a Slow Consumption Lift

Beijing’s post-property-collapse strategy centers on innovation and high-end manufacturing to achieve “high-quality” growth, but domestic consumption remains weak (about 40% of GDP in 2024), and the social safety net is underfunded amid an aging population. With deficits rising and tax revenue slipping despite growth, China relies on exports and industrial upgrading while retaining old, labor-intensive sectors. If demand doesn’t pick up, overcapacity could depress profits and public finances, potentially hurting both China and its trading partners even as China’s share of global manufacturing climbs and sparks tensions with other economies.

via Foreign Affairs|

#china-economy #consumption-led-growth #economy

economy2 years ago•5 min saved

China's Economic Miracle: Unveiling the Mirage

China's failure to implement major economic reforms has left the country reliant on outdated policies, leading to a massive debt pile and industrial overcapacity. Analysts warn that China is at risk of a financial or economic crisis that could have significant social and political costs. The options for China include a swift, painful crisis that addresses debt and excess capacity, a gradual wind-down of these issues at the expense of growth, or a consumer-led model with structural reforms. However, the likelihood of actively switching to a new model is low, as previous reform plans have been abandoned due to fears of short-term risks.

via Yahoo Finance|

#china #debt #economic-reform