Western media: China's economic miracle is fading

The last two decades in the life of China are called an economic miracle. Indeed, the Asian giant has achieved incredible success, but the era of achievements is coming to an end. This is announced by Western economists, whose opinion is quoted by a number of American and European media. The thing is that to ensure the colossal growth rates, Beijing needed completely non-communist principles and methods of enrichment. Accordingly, in the end, its macroeconomic system suffered the standard problems and diseases of the capitalist system.

The combined approach to the exercise of power and management (socialist basis with the widespread introduction of market methods) yielded results, but the hybrid system could not overcome the known shortcomings. First, the declining birth rate in China, where it is expected to be 8 million this year compared to 9,4 million last year, will affect the future labor force and economic growth in the medium term.

Second, the country's combined public and private debt now exceeds 300% of the state's GDP, signaling an imminent looming financial crisis. The management is pushing back the debt collapse as best it can to prevent the collapse of the mortgage industry and business investment.

On top of that, thirdly, the world economy is becoming less receptive to Chinese trade and investment, as evidenced by the West's dominant "risk reduction" agenda that became the leitmotif at the recent G7 summit.

Many economists expected that the Chinese would take “revenge” and, after the removal of covid restrictions, would start spending with a vengeance. But this did not happen, which immediately crossed out all forecasts for recovery. Coupled with the country's sluggish economic performance, unable to reach pre-pandemic levels, the situation allows Western analysts to argue that the era of the Chinese economic miracle is disappearing.

Against this background, the devaluation of the yuan against the dollar no longer looks like something out of the ordinary, but rather like something logical and inevitable.

In this aspect, some experts who are loyal to China advise Beijing to sacrifice growth rates, rather than retreat from the basic principles of state structure and functioning. As is known, the PRC at one time chose the opposite path, for which now they have to pay.
  • Used photos: pxhere.com
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  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 26 July 2023 09: 02
    In our country, it would "disappear like that" in terms of the pace of economic development ...
    1. 41 88 Offline 41 88
      41 88 (41 88) 26 July 2023 09: 17
      China and Russia are incomparable absolutely and relatively
    2. Nelton Offline Nelton
      Nelton (Oleg) 26 July 2023 09: 21
      Quote: Sergey Latyshev
      In our country, it would "disappear like that" in terms of the pace of economic development ...

      Well, maybe it will be a discovery for someone, but the ratio of GDP PC (without left PPP markups) of the Russian Federation and China has unexpectedly stabilized since 2015 at about 1:1.
      The fertility rating in China is 1.2, for reproduction you need 2.1.
      (in South Korea, in general, 0.9 ... In the Russian Federation, at least 1.5)
  2. Constantine N Online Constantine N
    Constantine N (Constantin N) 26 July 2023 09: 20
    Yeah, 0,05% decline in population per year with 1,5 billion people is a direct problem. given the total robotization in the coming years. Yes, and a large debt does not seem to be a problem now, given that the process of redistribution of the world has begun.
    again, the Western press came up with ...
    1. Nelton Offline Nelton
      Nelton (Oleg) 26 July 2023 09: 36
      Quote from Constantin N.
      0,05% population decline

      0,05% is, of course, nonsense, but in the long term, 1,2 children per woman is the transformation into a nation of pensioners over the lifetime of one generation.

      In general, in the development of each country once in history a powerful resource is given, this is the exodus of the rural population, youth, to the city. This yesterday's rural youth is ready to work hard for minimal wages, which can ensure phenomenal growth rates during this period. Or maybe not if he leaves as guest workers in other countries.
      Here in China, this resource is coming to an end.
  3. Flight Offline Flight
    Flight (voi) 26 July 2023 09: 51
    By the time China reaches the demographic collapse in the Russian Federation, black tribes will flourish in Russian lands.
    1. nepunamemuk Offline nepunamemuk
      nepunamemuk (Akela Missed) 27 July 2023 00: 22
      Negro tribes will flourish on Russian lands

      only when palm trees "bloom" on Russian lands
      and when they bloom, the blacks will turn white lol
  4. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 26 July 2023 10: 33
    The colossal growth of the PRC's economy is based on the dictatorship of the proletariat and the return after the Great Leaps of Mao Zedong to the Leninist principles of building Socialism, which formed the basis of DengXiaoping's reforms, the main elements of which were state planning, regulation of purchase and sale and monetary circulation. The United States constantly accuses the PRC of currency manipulation and market disruption, which ultimately boils down to attempts to discredit the Communist Party.

    The decline in the birth rate is an objective indicator of an increase in the standard of living and economic security, which allows more money to be spent on satisfying personal “wishlist”. And vice versa, the lower the standard of living and economic security, the higher the birth rate, because it increases the chances of survival for each individual and the clan as a whole.

    The lion's share of the public debt of the PRC is made by the private sector, which is based not on public, but on private interests - personal gain, which took place during the NEP in the USSR, after its collapse and the restoration of capitalism, when private capital went into the most profitable and low-cost industries such as natural resource trading, light and food industries, ignoring science-intensive and high-cost industries with a long payback period.

    The PRC's economy is growing at a faster pace, and the domestic market is the largest and most solvent in the world, which objectively testifies to the better development conditions and management system, headed by the Communist Party of China. According to the IMF, China's share in world GDP is 18,62%; and the USA - 15,74%. All others are not close to them, and therefore the world economy is trying to catch the slightest hint of any changes in the domestic and foreign policy of the PRC, whose economy is the locomotive of the world.
    1. Pivander Offline Pivander
      Pivander (Alex) 26 July 2023 11: 09
      According to the IMF, China's share in world GDP is 18,62%; and the USA - 15,74%.

      Only in China it is mainly manufacturing, while in the US it is a service sector and paper speculation.
      1. Uncle Vlad Offline Uncle Vlad
        Uncle Vlad (Uncle Vlad) 29 July 2023 07: 52
        Why, then, in the US GDP includes income from prostitution and drug trafficking. When 20 percent of the population sits on any chemistry, this is a lot of money.
    2. Nelton Offline Nelton
      Nelton (Oleg) 26 July 2023 11: 29
      Quote: Jacques Sekavar
      China's economic growth is based on the dictatorship of the proletariat and the return after the Great Leaps of Mao Zedong to the Leninist principles of building Socialism

      sure sure...

      1979 .... Dan set an example Japan as a country with a rapidly developing economic power, whose experience could serve as a lesson for China in the light of future economic transformations.

      Then came the policy of attracting foreign investment in production for export, starting with the free economic zones of Shanghai and Shen-Ren, which for foreign investors were just another Hong Kong - Taiwan - Singapore.
      Yeah, they handed over the Chinese proletarians to the exploitation of world imperialism ...

      And to this day, in general, it is.
      Let's say in the spring -

      European aircraft manufacturer Airbus plans to open a second assembly line in Tianjin, doubling the country's production capacity, Agence France-Presse reported.
      The corresponding agreement was signed by the company's CEO Guillaume Faury on Thursday in Beijing at a ceremony during the state visit of French President Emmanuel Macron to China.