Source link : https://www.mondialnews.com/2025/08/11/has-china-reached-its-peak-unveiling-the-nations-defining-turning-point/
In a striking analysis published by The Guardian, renowned economist George Magnus argues that China’s long-standing era of rapid economic ascent may have reached its peak. Once the world’s fastest-growing major economy, China now faces a confluence of demographic, structural, and geopolitical challenges that could signal a new phase of slower growth or stagnation. Magnus’s assessment sheds light on the implications of “Peak China” for global markets, supply chains, and policy makers grappling with the shifting dynamics of the world’s second-largest economy.
China’s Economic Growth Slows Amid Structural Challenges
For decades, China’s breakneck economic expansion has been a defining force shaping global markets. However, recent data suggest this momentum is decelerating due to deep-rooted structural issues. Demographic shifts – including a shrinking workforce and an aging population – are constraining labor supply and driving up costs. Meanwhile, the country’s heavy reliance on investment-led growth and exports is showing diminishing returns amid rising global protectionism and trade tensions. These factors combined signal a critical juncture, with growth rates slipping below the threshold previously seen as emblematic of China’s economic dynamism.
Key challenges impacting the economy include:
- Increasing debt levels in local governments and state-owned enterprises undermining financial stability
- Technological catch-up slowing as innovation faces…
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Author : Jackson Lee
Publish date : 2025-08-11 18:40:00
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