COINTRIBUNE | Published December 28, 2024
China, long seen as the unwavering engine of the global economy, is currently undergoing a major crisis. Years of double-digit growth, which symbolized its rapid ascent, have given way to a period of deep economic uncertainties. The fragility of its economic model, primarily based on investment and exports, is becoming increasingly visible. Issues such as the rise of public and private debts, the collapse of the real estate sector, and the emergence of the specter of deflation are exacerbating internal economic tensions. These dysfunctions raise a fundamental question: after decades of development often described as miraculous, can the Middle Kingdom still sustain its role as a pillar of global growth ?
An Economy Under Strain
China, once viewed as a model of economic success, is now facing a slowdown that triggers strong concerns. Numerous recent statistics indicate a particularly marked stagnation in strategic sectors, notably real estate. The bankruptcy of giants like Evergrande reflects the fragility of an economic system that has relied for years on excessive debt accumulation to fuel its growth. This structural imbalance is accompanied by insufficient domestic demand, the result of economic policies focused on supply and investment to the detriment of consumption.
Meanwhile, external factors are worsening these difficulties. Falling trade volumes, amplified by increased geopolitical tensions, are reducing avenues for Chinese exports. Demographically, the accelerated aging of the population exerts additional pressure on the workforce and hampers economic dynamics. Despite significant efforts, such as stimulus plans and more lenient monetary policies, Chinese authorities are struggling to restore the confidence of households and investors. The economic model, long praised for its resilience, now seems to lack momentum, raising doubts about its ability to rebound sustainably.
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SOURCE: www.cointribune.com
RELATED: China’s top economic planner sets up department to boost low-altitude economy
A 5-seat eVTOL (electric vertical takeoff and landing) aircraft flies during a demonstration flight near Shekou Cruise Home port in Shenzhen, South China’s Guangdong province, Feb 27, 2024. [Photo/Xinhua]
CHINA DAILY | Published December 28, 2024
BEIJING — China’s top economic planner has established a department to support the development of the burgeoning low-altitude economy, as the country strives to foster new growth drivers.
The new department, under the National Development and Reform Commission (NDRC), is responsible for formulating and organizing the implementation of strategic as well as mid-term and long-term development plans, providing policy recommendations, and coordinating major issues related to the low-altitude economy, according to the NDRC.
The department has recently held symposiums on advancing the construction of low-altitude infrastructure and low-altitude intelligent network systems, according to the latest updates on the NDRC website.
The move came amid intensified government efforts to tap the low-altitude economy, which refers to the economic activities and industries centered around manned and unmanned aerial vehicles operating in the airspace usually within 1,000 meters above the ground.
This industry is growing rapidly in China, with over 50,000 enterprises engaged in related businesses as of September, according to data from CCID Consulting. It estimates the scale of the country’s low-altitude economy at more than 670 billion yuan (about $93 billion) this year, with projections to exceed 1 trillion yuan by 2026.
This year, for the first time, the term “low-altitude economy” was included in the Chinese government’s work report. China will develop general aviation and low-altitude economy, according to a key resolution adopted during the reform-themed third plenum of the 20th Communist Party of China Central Committee in July.
Beijing, Shanghai, Shenzhen, Suzhou and dozens of other cities have announced supportive policies to develop the low-altitude economy.
The infrastructure and flight service systems for the sector will gradually improve steadily over the next few years, driven by advancements in intelligent network technologies and strengthened management practices, according to CCID Consulting.
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SOURCE: www.chinadaily.cn
With No Pay, Workers Burn Factory; This Trend May Sweep China
It’s the end of the year again, and tensions in China over wage disputes are at a peak. This year, several regions have seen increasingly extreme methods from workers trying to get their unpaid wages.
https://www.youtube.com/watch?v=ApF9MQt52FE