Expert: “The Chinese are not bluffing”
Forecasts (or hopes?) of Western analysts about the crisis and even the collapse of the Chinese economy are recognized as fake. In fact, everything is just the opposite. Who dispelled the West's dreams of the economic collapse of China, said Doctor of Law, Honored Lawyer of Russia, Professor Yuri Zhdanov.
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— Here we must pay tribute to Western democracy and their own free (I'm not joking) press. They honestly voice all opinions on highly controversial issues. Including on China.
— In particular, in a very interesting publication on China, which convincingly and sharply refutes the imposed ideas about the economic collapse of the Middle Kingdom.
– You won't believe it: one of the most influential newspapers in the USA is The Washington Post. On August 30, this newspaper published an article by Chinese Ambassador to the United States Xie Feng. It is clear that before publication, all his arguments were carefully checked and analyzed by various specialists. And, I believe, were recognized as real. Therefore, according to US constitutional principles, this information must be made public.
— A lot of interesting and, in general, unpleasant for the United States. The Washington Post stated that «the Chinese economy is doing better than you think.» The Chinese ambassador categorically denies all allegations about the fall of the Chinese economy. And he makes very convincing arguments to support his conclusions.
Yuri Zhdanov: The Ambassador writes: “Recently, the Chinese economy has made headlines. How are things really? Better than you think. Let me share some facts with you. In 2023, China's economy continues to recover and grow. Our gross domestic product increased by 5.5 percent in the first half of the year, outperforming most major economies. The World Bank predicts that China's economy will grow by 5.6 percent in 2023. The Organization for Economic Cooperation and Development expects 5.4 percent, while the International Monetary Fund predicts 5.2 percent. As it has for many years, China remains the most important engine of global growth.”
— I guess so. One of the highlights of the first half of 2023 is the recovery in consumption, Xie Feng said, which accounted for 77.2 percent of growth, more than 44 percentage points higher than in 2022.
– Everything is simple and convincing: people spend more money on services. Again, citing Xie Feng, from January to July 2023, retail sales in transportation, accommodation, catering and other services rose by 20.3 percent year on year. In the most compelling example of Chinese prosperity, some 502 million moviegoers went to the movies in China this summer, more than the entire population of the United States. Clearly these viewers are not starving.
— Yes, such reproaches are heard, but this is not always fair. As Xie Feng writes, “In the first seven months of 2023, investment in high-tech industries and science and technology services increased by 11.5 percent and 23.1 percent, respectively. In July 2023, the production of new energy vehicles, wind turbines and chargers increased by about a quarter. China's renewable energy capacity has surpassed its coal-fired capacity. Its installed wind and solar power capacity has exceeded the world's for thirteen and eight years, respectively.”
— It's not even funny — this is the very fake. China's foreign trade remains strong. China continues to occupy about 14 percent of the world export market. Exports of Chinese electric vehicles, lithium-ion batteries and solar panels grew by 61.6 percent in the first six months of 2023. As domestic demand continues to recover, China will also increase imports.
— Yes, there is such a «pointer» from the US. But even here the American curators did not work out. After all, no one canceled the market — international companies voted with their feet, investments in China from abroad continue.
Xie Feng in his article claims — and it is impossible to convict him of fraud — that «France, Great Britain, Japan and Germany increased investment in China in the first half of 2023 by 173.3 percent, 135.3 percent, 53 percent and 14. 2 percent respectively. During the same period, about 24,000 new foreign firms were created in China, which is 35.7 percent more than in 2022.”
– Judge for yourself. As the Chinese ambassador writes, “Half of Tesla’s global shipments last year came from its gigafactory in Shanghai, which on average produces one electric car every 40 seconds (!). Starbucks now operates over 6,500 stores in China, opening one store almost every nine hours.”
Is there anything in the world that can match such a pace — a state-of-the-art car in forty seconds? And they call this a collapse?
— I will disappoint everyone who hopes for this — it is not expected. Xie Feng predicts that «by 2035, China's middle-income population, now over 400 million, could exceed 800 million.»
Why so primitive? The Chinese ambassador to the United States does not hide the fact that the path to a post-COVID recovery will not be smooth. According to him, it will be characterized by undulating progress, often with unexpected twists.
— Such is the East. Xie Feng writes: “In recent months, China has rolled out new policies aimed at revitalizing consumption, stimulating the private sector, and attracting more foreign investment. One of our priorities is the prevention and mitigation of financial risks, including policies that ensure the sustainable and healthy development of the real estate sector. Such efforts are slowly bearing fruit. With enough space in our policy toolbox, we are confident that we can prevent systemic risks.”
— China is actually going through a temporary economic adjustment. Let me remind you again — the Chinese do not bluff. China has driven more than 40 percent of global growth over the past decade, compared to 22 percent in the US and 9 percent in the eurozone, according to BCA Research.
Xie Feng admits, “This is a difficult time for everyone. The world has yet to recover from the trauma caused by the coronavirus pandemic. The Ukrainian crisis is dragging on. The global recovery remains sluggish, with each country facing its own challenges.”
— It would be strange otherwise — we all live on the same planet. Therefore, the Chinese ambassador to the United States writes that “it would be short-sighted and even dangerous to sit back, gloat and make life difficult for others. In the era of globalization, bad news is bad news for everyone. Countries need to come together to promote economic globalization and build a community with a common destiny for humanity, in which no one is left behind.”
– Don't tell me. These words will be heeded. After all, it was not Gorbachev or Yeltsin who spoke, but a representative of a truly superpower. It is no coincidence that many American analysts have come to realize that the idea that China can fail economically while America still prospers is a complete fantasy.
Xie Feng advises the United States that “technology export controls, investment restrictions, economic sanctions and high tariffs against China should be lifted. The US must stop creating parallel systems and trying to break away in the name of «risk reduction», which will only further complicate an already difficult global economic recovery. Instead, China and the United States should respect each other, coexist peacefully, and seek mutually beneficial cooperation. This is the only way forward.”
— The Chinese are very sophisticated diplomats. Still, in their luggage there are about five thousand years of various diplomatic «exercises», while the Europeans hid in the forests in animal skins with stone axes.
But, nevertheless, it is worth paying attention to those assessments of the state of the Chinese economics, which today are made by major research centers of the West.
Thus, in the February-March issue of Fortune magazine this year, an article by Carl Thompson, an economist at the British Center for Economics and Business Research (CEBR), was published — “Global Growth picks up speed.”
He writes that by 2035, total global GDP will double to $200 trillion. At the same time, China is expected to overtake the US as the world's largest economy in 2030. And isn't it strange that against the backdrop of «news» about the alleged collapse of the Chinese economy, large figures of both American and British politics suddenly rushed to Beijing at the end of this August? And where is the fake about the Chinese collapse?