China’s economy is showing remarkable resilience in the first half of 2024 as the government pivots from property-driven growth to fostering high-tech industries. According to Jeremy Zook, lead sovereign analyst for China at Fitch Ratings, this strategic shift focuses on developing “new quality productive forces” such as electric vehicles and renewable energy.
In an interview with CGTN’s Guan Xin, Zook highlighted that China is making significant strides in these emerging sectors. He emphasized that the medium-term outlook for the Chinese economy hinges on the ability of these innovative industries to offset the slowdown in the property sector and address demographic challenges.
“China’s advancement in new high-tech industries is crucial for sustaining economic growth,” Zook said. “The government’s commitment to supporting these sectors demonstrates a proactive approach to transforming the economy.”
To facilitate this transition, Zook expects the Chinese government to provide additional fiscal support in the second half of 2024. This support aims to ensure stability and maintain steady progress as the economy adapts to new growth drivers.
The anticipated fiscal measures reflect China’s dedication to navigating demographic headwinds and fostering sustainable development through technological innovation. As the nation continues to invest in its future industries, the global community watches closely to assess the impact on Asia’s economic landscape.
Reference(s):
cgtn.com
