End of the line: The cost of faltering reforms
China's economic reforms have stalled, leading to increased state intervention and a divergence from open market norms, impacting global economic dynamics and investment strategies. The report assesses China's progress and challenges in comparison to advanced economies.
(Generated with the help of GPT-4)
Quick Facts | |
---|---|
Report location: | source PDF |
Language: | English |
Publisher: | Atlantic Council |
Authors: | Benjamin Lenain, Charles Austin Jordan, Jeremy Mark, Josh Lipsky, Laura Gormley, Matthew Mingey, Sophia Busch, Daniel H. Rosen |
Geographic focus: | China |
Methods
The research method involved a comprehensive analysis of China's economic indicators compared to those of advanced market economies. The study utilized a framework that included six clusters: financial system development, market competition, modern innovation system, trade openness, direct investment openness, and portfolio investment openness. Data was collected from various credible sources, and composite scores were calculated to assess China's progress over time.
(Generated with the help of GPT-4)
Key Insights
The China Pathfinder Project, a collaboration between the Atlantic Council and Rhodium Group, evaluates China's economic reforms against advanced market economies. The 2024 report highlights that after a decade of tracking, China's economic system has diverged from open market norms, particularly in areas such as financial system development, market competition, and innovation. Despite some improvements since 2010, significant backsliding occurred in 2023, with state-owned enterprises (SOEs) dominating the economy and stifling private sector growth. The report identifies a lack of transparency and increasing restrictions on foreign investment, which have raised concerns among global investors. China's trade openness has also declined, particularly in services, due to heightened regulatory barriers and geopolitical tensions. The findings suggest that while China has made some progress, the overall trajectory indicates a persistent divergence from market-oriented policies, posing challenges for both domestic and international stakeholders. The report calls for a reevaluation of engagement strategies with China, emphasizing the need for transparency and market-driven reforms to foster sustainable economic growth.
(Generated with the help of GPT-4)
Additional Viewpoints
Categories: 2024 publication year | China geographic scope | English publication language | direct investment | economic reforms | financial system | foreign investment | geopolitical tensions | innovation system | market competition | portfolio investment | state-owned enterprises | trade openness