Illustration: Chen Xia/GT

Illustration: Chen Xia/GT

China gbagains manufacturing prowess, yet Bloomberg warned on Saturday of potential risks similar to Japan’s fate. In the West, especially in the US, a viewpoint has emerged predicting a "China collapse" similar to Japan’s in the 1990s. However, this perspective appears rather superficial and overlooks significant differences between the two nations.

Economic Comparisons and Misconceptions

In economic terms, China far surpasses Japan both in GDP and population size. While Japan’s economy faced stagnation in the ’90s, China’s economy continues to grow. In 2023, China enjoyed a growth rate of 5.2%. Its potential to continue growing at 5.5% remains strong, as noted by Chinese economists. These figures, in contrast to Japan’s 1.3% during the ’90s, highlight marked differences.

Demographics and Market Potentials

Aging populations contributed to Japan’s economic challenges. Conversely, China retains a significant working-age population. With about 860 million people in its labor force at the end of 2023, China holds a demographic advantage. National Bureau of Statistics data supports this and illustrates how China has a burgeoning middle class. This class fuels a vast domestic market, spurring consumption and cushioning against external shocks.

Policy Approaches and Macro-regulations

China’s economic strategies are calculated and pragmatic. The nation employs prudent monetary and fiscal policies, unlike other global powers that embrace loose monetary tactics. For instance, while Japan’s nominal interest rates drastically decreased in the 1990s, China’s remain moderate, maintaining room for further adjustments.

The nation balances short- and long-term goals, ensuring internal and external equilibrium. China’s ability to implement such balanced, counter-cyclical adjustments strengthens its financial environment. This stability paves the way for sustainable growth amidst global economic pressures.

Manufacturing and Technological Innovations

In manufacturing, China is a formidable global player. Its manufacturing sector is deeply embedded within world markets. This integration bestows a level of resilience Japan previously lacked. Furthermore, China advances rapidly in fields like artificial intelligence and new energy, showcasing its technological clout.

Promoting upgrades in these high-tech industries positions China for continued growth and evolution. By studying Japan’s bubble and stagnation, China actively avoids similar missteps. This learning enables China to maintain steadier economic trajectories.

In conclusion, while external narratives may portend challenges, China remains well-poised to sidestep Japan’s previous economic pitfalls. With its large economy, demographic advantages, innovative drive, and pragmatic policies, China is geared for sustainable growth. Such strengths set China apart, securing its ongoing progression.

The author is a reporter with the Global Times. bizopinion@globaltimes.com