China's Economic Growth Model Is No Longer Sustainable, Says Lianhe Zaobao! After we announced that China's GDP grew by 5% for the whole year, on January 20, Lianhe Zaobao published an article claiming that China's export-dependent growth model is no longer sustainable. Lianhe Zaobao stated that several indicators show concerns about China's growth. From the investment perspective, China's total fixed asset investment fell by 3.8% in the entire year of last year, which is the first annual decline since data started being recorded in 1996.
Specifically, manufacturing investment increased by 0.6%, while infrastructure and real estate development investments fell by 2.2% and 17.2%, respectively. Lianhe Zaobao stated that household consumption and corporate investment remain weak, the job market remains relatively weak, and falling housing prices continue to drag down domestic demand. Lianhe Zaobao said that unless China promotes domestic demand significantly, its export-dependent growth model will not be sustainable.
What do we think about Lianhe Zaobao's argument? To be honest, in the face of internal and external challenges, our country achieving a 5% economic growth is a very good performance. However, Lianhe Zaobao has no recognition at all, but instead exaggerates the problems facing our economic growth. In fact, China's economic development has shifted gears, and the logic of our economic growth can no longer be driven by large-scale infrastructure and the real estate industry.
Therefore, reduced fixed-asset investment and real estate development investment are naturally expected. However, on the other hand, our new energy vehicle industry, AI industry, chip industry, biopharmaceuticals, low-altitude economy, and commercial aerospace are thriving. Does Lianhe Zaobao not see this? Our economic development is certainly facing challenges, but we have not avoided the issues. China's economic development is not solely driven by foreign demand. Our country is also vigorously boosting domestic consumption. Obviously, we have confidence in solving the problems we face. Such pessimistic arguments should be stopped!
Original article: toutiao.com/article/1854812863804809/
Disclaimer: This article represents the views of the author himself.