The Great Power Shift: China’s Economic Might vs. US Traditions
According to Steven Rattner's article in The New York Times, it is evident that China's economy has shown the ability to outgrow that of the United States.
Rattner cautions against harboring any illusions suggesting otherwise.
Rattner, who served as a counselor to the Treasury secretary during the Obama administration, acknowledges that China’s rebound after easing strict COVID policies fell short of high expectations.
Recent manufacturing data has further fueled concerns about China’s economy, and earlier signs of a stagnant performance led Ruchir Sharma of Rockefeller International to dismiss the rebound narrative as a “charade.”
However, Rattner highlights that China’s growth since 2020 has reached 14%, surpassing the US growth rate of 6%. Moreover, China is projected to achieve a growth rate of 5.2% this year, compared to 1.6% in the US.
Despite growing skepticism from the Western press, Rattner believes China will continue to thrive. As the United States’ main strategic rival, China will leverage its prosperity to assert its dominance in various areas, ranging from the South China Sea to issues like spy balloons and unfair trade practices.
Rattner also acknowledges significant challenges that China faces, such as the level of government control over businesses and a youth unemployment rate of 20.4%. Additionally, trade restrictions imposed by the Trump and Biden administrations could hinder China’s development of key technologies like artificial intelligence.
READ MORE: BRICS vs. USD: Chamath Palihapitiya’s Bold Prediction for Global Currency Dominance
However, regardless of China’s obstacles, Rattner argues that the US must address its internal issues. To compete with China, the US needs to increase its growth rate by tackling problems like the large budget deficit and cumbersome regulations on industrial development. This can be achieved by addressing the budget deficit and modifying regulations to facilitate industrial expansion.
Rattner emphasizes the importance of cultivating a STEM workforce to maintain the US’s technological prowess. Moreover, he suggests implementing legislation to attract talented individuals worldwide.
In conclusion, Rattner asserts that the US should not indulge in the fantasy that China will collapse under its own weight. Instead, he urges both countries to consider whether their rivalry needs to be destructive or if a more prosperous and cooperative future is still possible.
Source: BusinessInsider
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
