Moneycontrol | China Economy: Has the export-investment-state-driven growth model reached its limits?

The Chinese economy appears to be undergoing a historic churn. This is a product of several factors, such as the structural challenges of the investment and exports-driven growth model, government intervention in order to reshape economic structure and incentives and a turbulent external environment. The scrapping of the zero-COVID policy in late 2022 had created expectations for a rapid economic recovery in China. This was reflected in the rise in growth expectations in the first quarter of 2023. There was anticipation that pent-up consumer demand, increased fiscal spending, and efforts to boost market confidence and signal openness and policy predictability would result in growth rebounding. This, however, has not come to pass. Read the full article here.