According to China’s economic analysts, China is moving from a highly dependent on a real estate and infrastructure business model to a digital and green economy.
Demand from the U.S.A and Europe fell, and exporting to the south Asian regions has become stronger.
The Chinese economy in 2023 will not look like it was in 2019. It is going to be poles apart.
Chinese real estate has seen a sudden fall in price, and the exports have gradually become less.
According to analysts, the elements underpinning the growth will certainly look different.
The digital economy category includes communication equipment, information, transmission, and software.
The green economy is the industry that needs to invest in reducing carbon emissions. Carbon emission- electric power steel and chemicals, among others.
Over the next five years, cumulative investments into the digital economy are expected to grow more than seven-fold to reach 77.9 trillion yuan ($11.13 trillion), according to CICC estimates which surpasses the cumulative investment into real estate, traditional infrastructure, and green economy, making digital the largest of four categories.
Reports said that in 2021 and 2022, real estate was the largest category by investment, but analysts from CICC said that the investment in real estate fell by 22%, and the digital and green sectors grew by 24% and 14%, respectively.
While the world struggled to contain Covid-19 in 2020-21, China’s control of the virus helped local factories meet the increase in global demand for health products and electronics, which is dropping now. As a result, China’s exports started to fall year by year from October for the first time since May 2020.
The expectation for next year is a reduction in net exports to cut growth by 0.5% points.
Hui Shan, Goldman Sachs chief china economist, said that Net exports had helped china’s GDP growth over the last several years, which contributed as much as 1.7% points in 2021, the analyst said.
- Published By Team Genuine Reporter