This week on Woo Says, we take a closer look at China’s economic growth numbers. With critiques asking if this marks the end of China’s economic miracle, Melisa Idris speaks with Prof Emeritus Datuk Dr Woo Wing Thye to unpack the slowdown.
00:00Sekarang, minggu ini mengatakan Wu mengatakan kita melihat jumlah kembali mengembangkan keamanan ekonomian kecil.
00:06Kritik bertanya, apakah ini akhirnya kematan kemudian?
00:09Melissa Idres mengenai ini dengan Prof. Emeritus Datuk-Dr. Wu Wingtai.
00:17Saya tidak memikirkan itu akan kematan kemudian kemudian kemudian kemudian China membuat salah satu kesalahan yang sangat serius.
00:25First of all, we have to remember that the Chinese economy grew at over 10% a year from 1970 up to 2012.
00:38It is unrealistic to expect that the country could continue to grow at 10% a year for the next 30 years.
00:49It is for the simple reason that a large part of the growth occurs because China started out very far from the global frontier of technology.
01:04So China started with a very backward level of technology and when it opened up, it entered the global market of technology.
01:15So it's able to buy technology, look at what other people have done, and they have run the correct lessons and went ahead and it grew at 10% a year for the first almost 30 years.
01:32That has to slow down, largely because as you get closer and closer to the global technological frontier, your gap is not so big anymore.
01:43So everything you do is less, have less of a bank than before.
01:51So which is why in 2014, when Xi Jinping came to power, he pronounced that China has entered into a new normal.
02:06The new normal means a growth of roughly 7% down from the 10.
02:13But what we have seen in recent years is much lower than 7%.
02:18Like 2023, 2024, it is less than 5.5.
02:24So it is unnaturally low.
02:28And the IMF has predicted that 2025 will be less than 4%.
02:36So I do think that China has been growing below potential from ever since around 2018, largely and it could easily grow back at 6%.
02:57Catch the full conversation of this on all Awani International's social media accounts at Power Affairs.
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