May 21, 2024 1:55 pm
China’s Economy is Undergoing a Great Transition, Not a Great Decline | articles

In recent years, China has faced significant challenges due to rapid industrialization and heavy pollution. The country’s efforts towards green development have been praised for reducing pollution levels and carbon intensity. However, critics have raised concerns regarding industrial policies leading to overcapacity and global market dumping.

The World Bank estimates that meeting the goal of Peak Carbon by 2030 and achieving full carbon neutralization by 2060 will require significant investment in green infrastructure and technology. Despite the potentially lower multiplier effect of green infrastructure investments compared to traditional sectors, they are still seen as crucial for productive fiscal policy in China.

China’s solar industry in the 2010s is often cited as an example of the potential challenges faced by its New Energy Vehicles (NEV) industry. Critics question the impact of Chinese policies on fair competition and the fate of companies that may fail as a result. However, we believe that these criticisms overlook the broader benefits of China’s approach towards greener growth. Despite some challenges, the country’s efforts are positioning it to be competitive in key industries of the future, which aligns with its broader economic goals.

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