{"id":251335,"date":"2023-07-08T20:44:48","date_gmt":"2023-07-08T15:14:48","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=251335"},"modified":"2023-08-31T14:04:34","modified_gmt":"2023-08-31T08:34:34","slug":"chinas-loss-of-momentum-rebuilding-a-bridge-too-far","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/chinas-loss-of-momentum-rebuilding-a-bridge-too-far\/","title":{"rendered":"China’s loss of momentum, rebuilding a bridge too far"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cChina’s loss of momentum, rebuilding a bridge too far\u201d <\/strong>published in \u201cThe Business Standard\u201d <\/strong>on 8th July 2023<\/strong>.<\/p>\n

Syllabus <\/strong>GS2- International Relations<\/p>\n

News-<\/strong> The Chinese economy is presenting a strange picture.<\/p>\n

How is the Chinese economy showing a different trend from other economies of the world?<\/strong><\/h2>\n

Much of the world is facing inflation. But, Beijing faces deflation in producer prices and low consumer price inflation.<\/p>\n

Central banks in other countries have been increasing interest rates. But, the Chinese are easing up on monetary policy.<\/strong><\/p>\n

There is a stock-market boom in countries like India. But,<\/strong> the Shanghai Composite index is lower than it was in 2009.<\/p>\n

Growth in last year was expected to be 5.5 per cent,<\/strong> but fell short at 3 per cent<\/strong>.This year\u2019s official growth target is 5 per cent. But the outlook for growth is uncertain due to the lack of domestic demand and of private investment.<\/p>\n

Industrial production is lower than the pre-Covid level four years earlier. Exports <\/strong>and Imports are down.<\/p>\n

What are the factors behind the recent slowdown in the Chinese economy?<\/strong><\/h2>\n

Some of these are cyclical issues. But, there are structural constraints<\/strong>. These are a shrinking population in the working-age bracket, massive public and quasi-public debt, over-construction in housing , shortage of consumer demand and poor project choices .<\/p>\n

China has shifted from capital investment to private consumption<\/strong> as the primary driver of growth. But, it has failed to achive growth aims.<\/p>\n

Western world is de-risking itself<\/strong> by reducing its dependence on Chinese manufacturing. Any meaningful de-coupling<\/strong> is not possible. But, more foreign investment will be headed to other countries as a result of di-risking moves<\/strong> by the west.<\/p>\n

What assumptions can be from these developments about the global political economy?<\/strong><\/h2>\n

Earlier assumptions were that China would become larger than the US as an economy, and challenge Western strategic dominance. It may need to be revised. <\/strong><\/p>\n

It is a rebalancing of global power<\/strong>, rather than a substantial power shift.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cChina’s loss of momentum, rebuilding a bridge too far\u201d published in \u201cThe Business Standard\u201d on 8th July 2023. Syllabus GS2- International Relations News- The Chinese economy is presenting a strange picture. How is the Chinese economy showing a different trend from other economies of the world? Much… Continue reading China’s loss of momentum, rebuilding a bridge too far<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,212,239,238],"class_list":["post-251335","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-2","tag-international-relations","tag-ir","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/251335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=251335"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/251335\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=251335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=251335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=251335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}