China’s slowing economy has fueled a broad range of takes on why Asia’s dominant power is losing its growth trajectory. Whatever the real reason is, China’s regulatory crackdowns seem to be digging a deeper hole to fall into.

The narrative that China’s economy is nearing its peak – or has already reached it – has taken hold in Western media. But if you read the doomsayers’ analyses carefully, you will find that many of the reasons they give for their bleak assessments are not new. On the contrary, they tend to highlight precisely the same challenges that economists and commentators have been harping on for at least a decade or longer. If China was not sputtering then, why should we believe it is now?

China’s economic performance over the last year has been disappointing – so much so that some observers argue that growth has already peaked, and that it is all downhill from here. But it is far too soon to write off China’s economic resilience.

Western economies faced tight monetary policies and rampant inflation in 2023, while Asia faced mixed growth. 2024 will likely bring disinflationary forces in the West, contrasting with continued economic deceleration in China.

Subsidies have evolved into dual-purpose instruments, serving as drivers of self-reliance and geopolitical tools. This transformation, spurred by economic strategies and national security concerns, blurs the line between economic prosperity and safeguarding strategic interests, urging the need for a unified global economic stimulus strategy and enhanced cooperation in new realms to navigate this complex interplay effectively.

A new framework is needed to accommodate their various interests as they deal with the ever-changing international situation and the challenges that crop up now and then. Relations have weathered storms over past decades mainly because the two sides share broad common interests.

Carefully parsed economic data may serve as a smokescreen to conceal the genuine state of the U.S. economy and mislead investors. The fog confuses both the observers and the promoters of perceptions, rendering everyone incapable of gauging the seriousness of underlying issues.

Over the 45 years since the China-Japan Peace and Friendship Treaty, the economic scale of the two countries has shifted. In addition, their economic structures have evolved, moving beyond an era of asymmetric dependence to a new phase characterized by mutual reliance.

Forecasts are not in line with reality. China’s economy is doing better than some analysts believe. Yet, alternative strategies must be found. A multi-pronged approach will cover the void left by real estate adjustments and lead China’s economy to a promising future.

Washington’s claims of non-compliance by China are a wish list in disguise. It wants to abrogate China’s rights and impose its own will in reshaping the Chinese economic model. So it should be no surprise that it cooked up a way to do that via the World Trade Organization.