China is making a big shift in its economy to protect itself from global problems like wars and pandemics. Under Xi Jinping’s leadership, the country is focusing on becoming more self-reliant and less dependent on international trade. This strategy, called the “fortress economy,” aims to strengthen China’s internal industries and reduce vulnerabilities. With global tensions rising and its economy struggling, especially in real estate, China’s new plan is to create a robust and resilient economy that can handle severe crises and still thrive. This dramatic change reflects China’s ambition to stay strong and competitive on the world stage.
In a move to protect China’s economy amid growing global challenges, Xi Jinping, the leader of the Chinese Communist Party (CCP), is shifting the country’s economic strategy. This new approach is all about making China more self-reliant and resilient, especially in the face of global conflicts and pandemics.
A recent study by Jimmy Goodrich from the University of California looks into how the CCP is putting this “fortress economy” plan into action. This plan aims to make China less dependent on foreign markets and better able to handle big disruptions.
The reason behind this shift is clear: global tensions, like the U.S.-China rivalry, the Russian invasion of Ukraine, and the COVID-19 pandemic, have shown how fragile the world’s interconnected supply chains can be. These events have pushed China to rethink its economic strategy, focusing more on developing its own industries and less on relying heavily on exports.
One key part of this new strategy is the “dual-economic circulation” policy. This means China wants to balance its economy by boosting domestic industries while still engaging in international trade. The goal is to create a strong internal economy that can handle global shocks better.
This strategy also fits into Xi Jinping’s broader national security goals. The CCP is focusing on areas like food and energy security, strengthening supply chains, preparing for emergencies, and building up reserves. These steps are meant to ensure China can stay strong during tough times.
China’s economy has been heavily dependent on exports, which last year totaled around $3.38 trillion, while imports were about $2.56 trillion, leaving a trade surplus of $820 billion.
Robert O’Brien, a former U.S. national security adviser, has warned that China is preparing for a long-term struggle and that the U.S. should take this seriously.
Since the COVID-19 pandemic, China’s economy has faced significant challenges, including a major property crisis. Evergrande, a huge real estate company in China, has amassed a massive $340 billion in debt and is struggling. This real estate sector, which is crucial to China’s economy, has caused economic trouble and slowed growth.
Reports show that without major reforms, China’s economy might continue to face problems, potentially affecting its global economic position. Critics argue that the Chinese government’s focus on political ideology over economic reform is partly to blame for these issues. They suggest that China’s goal of becoming the world’s largest economy by the end of this decade is unlikely to be achieved.
Bloomberg economists predict that China might surpass the U.S. economy in terms of GDP around the mid-2040s, but only slightly, and then possibly fall behind again.
In short, China’s new economic strategy aims to make the country more self-sufficient and less vulnerable to global disruptions. While this approach may help in the short term, the long-term success and its impact on the global stage remain uncertain.
