The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

China's economy: China’s best of times is also its worst of times

China’s hugely successful growth-at-all-costs economic strategy is reaching crisis point. The increase in domestic consumption that would help sustain high growth, is laggardly and its political leaders fight shy of pursuing the radical policies that would boost it. Elliot Wilson reports.

IN RECENT DECADES many ambitious emerging nations have risen, stalled and (sometimes) risen again. They have each adhered to the same superpowered investment-based industrial growth model – to their detriment.

The latest to suffer this fate is China, a proud nation undergoing its third cultural-industrial revolution in a century. In many ways, China has become a tale of two countries: the rich coastal western regions and the poorer hinterland; a wealthy urbane middle class and an enfeebled rural working poor; a corrupt corporate core driven by lazy, bloated state enterprises and a thriving but overlooked private sector.

China is in trouble. It faces slowing growth, a shortage of willing labourers, historically low rates of domestic consumption, and an economic model based on shovelling ever larger slabs of exports into countries and regions – notably Europe and the US – whose people, concerned about their future, are suddenly disinclined to spend.

Gordon G Chang, the author of several Asia-focused books including The Coming Collapse of China

"China is at high tide. Soon it will all be downhill and the fall will be quick"

Gordon Chang

China’s future, in short, reads like a horror story.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree