Chinese economy in trouble; model is “broken,” according to a report

News regarding the Chinese economy: According to a large Sunday article in The Wall Street Journal, economists now fear that China is entering a period of significantly slower development, which will be exacerbated by unfavorable demographics and a growing rift with the US and its allies.

Chinese economy in trouble; model is “broken,” according to a report :

Economic news from China: China’s economy, the second-largest in the world, is currently in serious danger, and its 40-year successful growth model is “broken,” according to a renowned American financial newspaper, which also noted that symptoms of problems go beyond China’s gloomy economic data to faraway areas. In a significant Sunday article, The Wall Street Journal reported that experts now believe China is entering a period of significantly slower growth, which is being threatened by unfavorable demographics and a growing rift with the US and its allies. It noted that this might not simply be a brief moment of economic stagnation but also the end of a protracted era.

The financial daily declared that the (economic) model was no longer valid. Adam Tooze, a history professor at Columbia University who specializes in economic crises, was reported in the Wall Street Journal as saying, “We’re witnessing a gearshift in what has been the most dramatic trajectory in economic history.” The research claims that as of 2022, China’s overall debt—which includes debt held by various levels of government and state-owned enterprises—rose to nearly 300 percent of its GDP, surpassing US levels and increasing from less than 200 percent in 2012, according figures from the Bank for International Settlements.

Senior leaders in Beijing have acknowledged that the economic paradigm of previous decades has hit its limits, the newspaper reported. Last year, Chinese President Xi Jinping lashed aim at authorities for relying on borrowing for building to boost economic activities in a harsh speech to a new generation of party leaders, it continued. Xi stated, “Some people think that investing in projects and increasing investments is what development is all about. But you can’t walk the old path in new shoes.”