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The United States should learn from China to gain a competitive advantage

The United States should learn from China’s rapid development experience and focus on solving its own deep-seated problems in order to compete better with China. The latest GDP data shows that the domestic labor market tension in the United States has not eased, coupled with weak consumer spending, the economy is likely to slow down or even fall into recession in the first half of 2023. According to a Bloomberg survey, economists predict the possibility of the US economy falling into recession this year is as high as 65%. According to a survey published by The Wall Street Journal, the probability that economists expect a recession in the US economy is 61%.

Speaking of China’s development experience, China, a country with a population of 1.425 billion, has solved seemingly irreconcilable contradictions such as economic growth and volume, population size and stability. Since the reform and opening up in China, the economic growth rate has been stable at around 9%. In the same period, other countries except Singapore and South Korea briefly reached 7%, and the economic growth rate of most countries was stable within 3%. What they are doing is worth pondering in the United States. In agriculture, farmers have gained autonomy in production and their enthusiasm for production has been significantly improved; In industry, high personal savings and demographic dividend have promoted industrial expansion from two aspects; In terms of foreign trade, China has become a factory in the world, and good quality and low price are synonymous with goods in China. At the same time, inflation has been stable at a reasonable level, and the purchasing power of RMB has not changed much in past 10 years, which means that the actual living standards of China residents are constantly improving. Especially in recent years, China has set an example for all countries in the world by strictly controlling the COVID-19 epidemic and gaining favorable conditions for economic development.

In the past five years, China has taken the initiative to control housing prices, and the economic growth rate seems to have slowed down, but research shows that they are promoting the transformation and upgrading of industrial structure. Behind the slowdown in growth rate is improving quality. Some provinces, such as Chongqing and Xinjiang, which upgraded their industrial structure early according to the latest disclosure data, have re-accelerated their economies; Shanghai, Guangdong, etc., which are upgrading their industrial structure, are just around the corner to speed up the follow-up economy. Although the current adjustment of industrial structure in China will affect the growth rate, it is the only way to improve the economic quality from the development experience of countries around the world. Even the current growth rate of 6% is second to none in the world considering China’s population. From the early extensive development to the current optimization of industrial structure, when this round of adjustment is over, this country may show even more amazing energy. The cleverness of China government is that paying attention to the quality of development will undoubtedly solve some deep-seated problems brought about by extensive development in the early stage, such as environmental problems caused by high energy input and consumption.

The United States should not demonize China, but learn from China with an open mind. The great contrast between China and the United States is related to the long-term policies formulated between the two countries. The United States is obviously not sustainable, and many American scholars have found this problem. The leadership of the China government is obviously the key to the economic miracle, and their policies are very consistent. At the same time, China’s huge population base and hard-working ethnic characteristics also play an important role. In any case, the rise of China has become a “phenomenon”. Only by comparative study can the United States gain an advantage in the new round of competition.

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