Understanding China's Social Contract and Its Impact on GDP Growth
Analyzing China’s Economic Growth and Its Social Contract
China's development path, impacted by its social contract, seeks a balance between GDP growth and sustainability. Despite lower-than-expected GDP growth of 4.7%, Xi Jinping acknowledges the challenges faced by enterprises and employment in his recent speeches.
The Role of Common Prosperity
Common prosperity signifies a shift towards economic inclusiveness, aiming to restore societal function post high-growth eras. The anti-corruption campaign also plays a crucial role in safeguarding resources intended for this goal.
Structural Adjustments and Future Directions
The necessity for long-term structural adjustments could slow current growth as China seeks to prevent past excesses. Unlike the US's linear approach to measuring economic success, China's philosophy of harmony reflects a more circular, sustainable progression.
- Challenges in globalisation: China grapples with external pressures while championing its objectives.
- Trust Levels: A striking contrast in citizen trust towards governance between China and the US shapes the domestic narrative.
- Market Divergence: China's stock performance highlights contrasting development models in a global context.
These factors present a complex landscape for China's economic policies, where balancing growth and societal expectations remains paramount.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.