The collapse of China’s 40-year-old economic model has left communists around the world clenching their teeth.

China was very proud of its successful economic model. Apart from this, wherever there are few communists left in the world, they used to praise the economic policies of communists by giving the example of China. But as soon as China’s economic model is about to collapse, the communists all over the world have kept silence. On the other hand, whatever measures China is taking to repair its economy to save it from collapse are failing, due to which economic experts around the world are also surprised. In fact, because of its strong economy, China had dominance in the whole world, but now the basis of China’s strength is not seen to be in a position to survive, due to which a crisis is looming over its future.

Chinese economy data is showing that the world’s second largest economy is facing deep crisis. Seeing China’s successful 40-year growth model crumbling, global economists believe that China is entering an era of very slow growth. Experts believe that the country’s economic situation has worsened due to unfavorable demographics and China’s growing distance with the US and its allies. It is being told that due to the continuous sharp decline in foreign investment and trade in China, Chinese President Xi Jinping sits in his office holding his head throughout the day. Jinping is also said to be troubled by this prediction of economic experts, in which it has been said that this period of economic weakness in China is not temporary, but its effect will be seen for a long time. Economic experts even believe that the way China’s economy is going into the abyss, it is going to be the biggest event in economic history.

If you look at the data from the Bank for International Settlements, it is known that the total debt, including the debt of various levels of the Chinese government and state-owned companies, was about 300 percent of China’s GDP by 2022, surpassing the US level. Done. Let us tell you that this ratio was less than 200 percent in 2012. Not only this, China’s National Bureau of Statistics (NBS) itself said in June that China’s GDP grew by 5.5 percent year-on-year in the first half (H1) of 2023. China’s GDP in the first half was 59,300 billion yuan. The data showed that the recovery in China’s economy has slowed after a brisk start in the first quarter after the pandemic as demand for Chinese products weakened at home and abroad and the Chinese government’s policies to support the economy slow down economic activity. have failed.

If we look at the situation in China, one thing that emerges clearly is that China, the origin of Corona virus, also suffered the most from the Kovid pandemic, but it never accepted it. Now when the strict restrictions of Corona are removed in China, people want to live life as before but the economic crisis is not allowing them to do so. According to Chinese media reports, people are now putting more emphasis on saving rather than spending as people feel that it is very important to save money for difficult times. If we look at the global media reports also, it is known that people are saving money for treatment in case of any unexpected illness or if they lose their job, they are saving money to meet the expenses till they get the next job. This is because China’s job market is said to be very weak. Youth unemployment there is at a record high above 21%.

Chinese citizens are avoiding having children due to unemployment and fear of losing their jobs. This situation is when China’s population is aging and the population is shrinking. The Chinese government, however, is taking several measures to boost demand in the market, including subsidies on cars and home appliances, extending restaurant opening hours, and promoting tourism and entertainment activities. But it is not having any effect. The industry has also termed the efforts of the government as insufficient.

Economists also say that China is currently facing deflation. Deflation means that people may have money but they are not buying the products, people are not buying the products so their prices are decreasing, factories are reducing their production and reducing employment opportunities. If seen, if this situation continues for a long time, then the Chinese economy will definitely be destroyed. Data showed that China’s factory-gate prices declined in July, as the Chinese economy struggles to boost market demand. When the figures for the month of August also come, they will be worse than July. A decline was observed in both China’s exports and imports in the month of July and the situation will remain the same in August. Apart from this, China’s real estate sector and banking sector are also facing various challenges. Despite low bank interest rates, worried consumers and companies are preferring to hoard cash rather than spend or invest the money.

However, due to China’s confrontation with western countries and its expansionist policies, China is also facing the brunt of the ongoing economic cold war. Foreign investment in China has almost stopped and many big companies have left China. Apart from this, low-wage labor and better technology are now available in many Asian countries like China, so foreign industries are now leaving China. Apart from this, with the intention of occupying the resources of many countries, the huge loan given by China to them is not being compensated from anywhere. Billions of dollars have been spent so far on Chinese President Xi Jinping’s ambitious BRI project. But this plan also seems to be failing. Overall, China’s economic future looks bleak, which can have a big impact on its expansionist policies. It has to be seen whether China also following the path of Pakistan, despite the worst economic crisis, prefers to increase the quarrel with the neighbors or prefers to live together.