What is the future of Chinese economy?
In the 2000-s, China was the major beneficiary of the globalization occupying successfully the niche of the world factory. Governmental investment and exports were the major drivers of economic growth that made it possible for China to maintain its annual rates at the average level of 10%. Now China has nearly exhausted the potential of this economic model. The government launched the ambitious program of the economic transformation, with internal demand considered as a new major engine of the economic development. The economic growth is slowing down but its quality is suggested to improve. Another important challenge is the drift of the global economy towards de-globalization. Specifically, the US-China trade war affects negatively the prospects of the Chinese economy and is likely to accelerate the transformation of its economic model. At the section, the following issues will be discussed:
- Is the transformation of the Chinese economic model really successful?
- What is the influence of this transformation on the other Asian countries?
- May be the economic growth at the level of 4-5% annually be sustainable for China?
- How does the US-China trade war affect the Chinese economy?