China's economy is headed for a 'dead-end,' and Beijing won't do anything to stop that, scholar says
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China's economy is in a dead-end with weak domestic consumer demand and slowing growth due to years of erratic and irresponsible policies, excessive Communist Party control, and undelivered promises of reform. The only solution Beijing sees is to rely on an export surge, which will lead to more tension with trade partners and a gloomier outlook for the Chinese people. The root cause of China's economic problems is the Communist Party's excessive control and counterproductive strategies. Most economists recommend loosening the grip on the private sector and promoting more consumption, but that is unacceptable to the government. The 1989 Tiananmen Square protests could have been an opportunity for liberalization, but the government chose to tighten control and rely on government investment. China's investment-driven growth has led to debt accumulation and underutilized infrastructure. President Xi Jinping is running out of policy options as Chinese consumers refuse to boost spending and trade partners impose barriers on exports. China's economy still relies on replicating existing technologies, and the 'reform and opening' era has ended. China's slowing growth, real estate crisis, high youth unemployment, and U.S. restrictions on key technologies have led to predictions of a lost decade of stagnation. However, some experts believe China will continue to expand at twice the rate of the United States. The article warns against complacency and highlights the need for the U.S. to address China's growth.

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https://fortune.com/2024/05/11/china-economy-outlook-dead-end-exports-manufacturing-trade/