China CAVES – US Wins Another Victory!

China Shuts Down Ambitions Of Trying To Beat US Economy

(HorizonPost.com) – When he opened a significant political event over the weekend, Chinese leader Xi Jinping appeared to change his long-term economic outlook, suggesting that economic failure may prevent China from overtaking the U.S.

According to reports, Beijing’s two-step plan calls for increasing public wealth and tripling the size of the economy by 2035 to create what it calls a great modern socialist country in all respects by 2049.

According to World Bank data, the U.S. economy will be worth $23 trillion in 2021 compared to China’s $17.73 trillion, so for China to surpass the U.S. economy in GDP terms, it would have to maintain annual GDP growth of at least 5%.

Reports show it was anticipated that it would take 15 years to reach this first milestone, known as the realization of socialist modernization, which was announced in 2020. The goal, however, seemed less ambitious on Sunday as Xi welcomed delegates to the twice-decade national congress of the Chinese Communist Party (CCP).  Xi predicted that By 2035, the country’s GDP and GDP per person would have doubled.

However, Xi didn’t mention 2035 in his recent statement.

Economic analyst Houze Song of Chicago noted Beijing was abandoning its ambition to become the world’s largest economy. Both measurements were initially included in the 2035 target. He added that the 20th work report only mentioned a new per capita income milestone, not the GDP.

Song pointed out that the 2035 objective was created before the spring 2021 publication of China’s 2020 census. He thinks there are two primary explanations for dropping the 2035 GDP target. Beijing first realized that achieving high growth would be more challenging due to its population declining faster than expected.

According to reports, many have claimed that Xi’s highly centralized approach to domestic governance, including his economic strategy of supporting state-owned businesses, is inhibiting the growth of the private sector. Xi’s recent decision to intensify his Zero COVID policy, his go-to public health strategy, has hurt productivity. It has resulted in the closure of small and medium-sized businesses and increased youth unemployment.

Last week, 200 million people in China were subject to various forms of restricted movement, including city-wide or neighborhood-specific lockdowns and a continuation of the nation’s requirement that all domestic and foreign travelers remain in quarantine.

The rest of the story is at the link above.

It’s not so much that China is failing. It’s that America has hit the skids, thanks to Joe Biden and his administration.

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