Is the Chinese economy really good?

Can China continue its momentum this year, where’I’m alone in economic growth’?

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The outlook for “will be so” prevails. The International Monetary Fund (IMF) predicts that China’s economic growth will reach 7.9% this year. Several research institutes even analyze that the Chinese economy will overtake the US economy as early as 2026. Again, it is largely due to the fact that other countries are unable to play the Mac due to the Corona 19 pandemic.

The confidence of the Chinese government is also substantial. Chinese Prime Minister Li Keqiang recently held a video conference with European businessmen and said, “Last year, the Chinese economy showed a fast and stable recovery,” and “We will further strengthen investment cooperation with Europe.” He also shows confidence that he will soon catch up with the United States with his remarks aimed at the United States.

However, is the Chinese economy truly’invincible’? There are also many concerns.

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The biggest concern is the’population issue’.

According to various statistics, China is expected to become an aging society where 14% of the total population is 65 years or older before 2025. Population aging is a problem that other advanced countries have also faced, but it is different in that they have faced this problem in a situation where the economy is much stronger than China. If this trend continues, China will become a super-aged society with one-third of the population aged 65 or older by 2060. The world’s aging problem is becoming the most serious country.

Hong Kong’s South China Morning Post (SCMP) pointed to the problem and reported that “the aging population and declining population will of course have a serious blow to the Chinese economy.” It is natural to lose the premium as a’factory of the world’, and the budget deficit is bound to increase like a snowball. The Chinese government is currently struggling to solve this problem, but the marriage rate between Millennials and Generation Z is only dropping.

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Some point out that there may be problems arising from China’s unique’state capitalism’ system. SCMP says, “The term “closed” still comes out as the government-led financial system prevents capital from freely flowing in and out. As can be seen from the so-called’Marwin Incident’, imprisoning private companies is also considered a big risk.

Above all, as long as it cannot overcome the’technological barrier’, the prospect that China will be difficult to catch up with the United States is prevailing.

That’s why the US government continues to press on Chinese companies for high-tech. It’s a strategy that doesn’t let you lose your technological advantage. From the standpoint of China, the difficult task of resolving the US-China conflict smoothly and catching up with technology at a rapid pace is ahead.

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In the midst of this, it is said that the increasingly polarization is a real problem.

This is because the younger generation in China, who has to work in the midst of it, is suffering from soaring house prices, prices, and difficulties in finding employment. Despite the positive outlook that the Chinese economy will soon catch up with the US, the anger of the youth is gradually increasing.

Reporter Lim Ju-ri [email protected]