Menu Search Account

LegiStorm

Get LegiStorm App Visit Product Demo Website
» Get LegiStorm App
» Get LegiStorm Pro Free Demo

China's Economy: Current Trends and Issues (CRS Report for Congress)

Premium   Purchase PDF for $24.95
add to cart or subscribe for unlimited access
Release Date Revised Dec. 20, 2024
Report Number IF11667
Report Type In Focus
Authors Karen M. Sutter, Michael D. Sutherland
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised Aug. 9, 2024 (3 pages, $24.95) add
  • Premium   Revised July 9, 2024 (3 pages, $24.95) add
  • Premium   Revised Sept. 27, 2023 (2 pages, $24.95) add
  • Premium   Revised April 6, 2022 (3 pages, $24.95) add
  • Premium   Revised Jan. 12, 2021 (119 pages, $24.95) add
  • Premium   Oct. 19, 2020 (109 pages, $24.95) add
Summary:

The International Monetary Fund (IMF) assesses that the People’s Republic of China’s (PRC’s or China’s) real gross domestic product (GDP) grew by 5.2% in 2023 and projects 5.0% real GDP growth in 2024. This growth is unbalanced, with supply much higher than domestic demand. The World Bank says that soft domestic demand, weak domestic and foreign business confidence, “tepid” productivity growth, and systemic debt, among other issues, could constrain PRC future growth prospects. Some economists contend that the economic returns of China’s growth model, which has emphasized government investment and exports, is diminishing. These elements still appear to feature in China’s current economic policies, however. The PRC government is seeking to reduce debt and boost growth and productivity by investing in innovation, education, digital infrastructure, advanced manufacturing, and emerging technologies. It is also pursuing state-led industrial policies to advance its economic and technology development goals. Such statist approaches can distort markets and incentivize production well above what China can absorb domestically. As products supported by PRC industrial policies come to market, China appears to be looking to foreign markets for growth. China’s share of global manufacturing output was about 30% as of 2022, highlighting the potential influence of PRC production and export policies on U.S. and global markets. Some in Congress and the Biden Administration have expressed concerns that PRC industrial policies and related subsidies are fueling PRC export expansion in sectors such as electric vehicles (EVs), semiconductors, solar energy, and steel.