These 5 misconceptions about China's slowing economy could lead to U.S. complacency, expert warns
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China's economy is suffering from slowing growth, a real estate crisis, high youth unemployment, and U.S. restrictions on key technologies. However, a top China expert warns against pessimism, stating that China is likely to expand at twice the rate of the United States in the years ahead. The expert points out five misconceptions about China's economy: 1) China is no longer gaining ground on the U.S. economy, but its GDP is expected to surpass that of the U.S. in about a decade; 2) Income, spending, and consumer confidence in China are not weak, with real per capita income rising 6% last year; 3) Deflation in China is not entrenched, as core prices rose 0.7% last year; 4) Lower property investment is not a major concern, as real estate investment fell by only 20% and completions expanded in 2023; 5) Chinese entrepreneurs are not fleeing the country, as private investment rose almost 10% last year and the number of family businesses grew. The expert warns that exaggerating China's problems could lead to complacency in the face of the challenges China presents to the West, particularly the United States.

#China #Economy #Us #Misconceptions #Complacency

https://fortune.com/2024/04/07/china-economy-outlook-gdp-growth-us-trade-investment-real-estate/