Is China headed down the path of decline?

In this commentary, NTU economics professor Tan Kong Yam discusses the current state of China’s economy. Has China already passed its peak and is it headed for long-term decline, as some analysts suggest? To get better, the Chinese economy needs to shed the drag from its bloated real estate sector and overexpansion in infrastructure. It won’t be easy, but it is premature to declare that China’s economy is in terminal decline. The next three to five years will be difficult ones as China undergoes the throes of deleveraging. The path ahead is sure to be marked by setbacks and recalibrations, but if China stays on track along the lines of the new development model, the result would be a healthier economy and a more stable and fairer society.

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