mandag 1. november 2021

The US has a chance to put China in the economic rearview mirror because of Xi's 'awkward regime shift,' BofA says

President Xi Jinping's plans to overhaul China's economy could give the US a fighting chance in a race it's been losing for decades. Since the late 1970s, China has consistently outpaced the US in economic growth. While the US remains a larger economy by gross domestic product, China is expected to become the world's largest economy in the early 2030s, according to International Monetary Fund estimates. By other measures, it already has.

Now Xi's own policy decisions could delay that ascension. The country's Communist Party has been pushing its "common prosperity" plan throughout the pandemic, intervening in its markets and the broader economy to combat wealth inequality. Related policies contributed to the halting of the largest IPO in history, the Evergrande debt crisis, and, most recently, the global energy crunch.