The Western perception of China's economic decline: A misguided view

Editor's note: The Afghan Institute for Strategic and Regional Studies (AISRS) is a pioneering institution dedicated to advancing scholarly discourse, research and collaboration on critical regional issues. This article reflects the AISRS' opinions, and not necessarily the views of CGTN.

In recent years, there has been a growing narrative within Western media that the Chinese economy is on the verge of collapse or, at the very least, experiencing significant challenges that will stunt its growth. Headlines often emphasize economic slowdown, labor issues, or property market problems, framing China as a nation struggling to maintain the breakneck pace of economic growth that characterized its rise in the early 21st century. However, this portrayal is far from accurate and fails to capture the broader reality of China's economic position, especially in relation to the Global South.

One critical factor missing from these negative headlines is the role China plays in fostering economic integration with developing nations, particularly in the Global South. While Western powers like the U.S. and the EU have raised tariffs on Chinese exports, effectively creating trade barriers, China has taken a different path.

China has removed or significantly reduced tariffs on products from many countries in Africa, Latin America and Southeast Asia. Far from building walls, China is lowering them to build stronger trade ties with emerging economies, facilitating growth both domestically and internationally.

China's approach to global trade focuses on creating mutually beneficial partnerships, even with poorer nations, by emphasizing a "win-win" policy that ensures both sides gain from the relationship. Unlike the U.S. and other Western nations, which often pursue economic hegemony and prioritize one-sided profits, China seeks equitable trade deals.

Western powers have historically used trade and economic influence as leverage, imposing sanctions and using economic pressure to coerce countries into alignment with their geopolitical agendas. In contrast, China's strategy promotes cooperation and shared prosperity in its international trade practices.

The myth of China's economic decline

The idea that China's economy is collapsing is based largely on selective reporting. The country has undoubtedly faced challenges, including rising debt, a slowing property market and the lingering effects of the COVID-19 pandemic. However, these are not unique to China, nor are they signals of an impending collapse. Every major economy – be it the United States, Germany, or Japan – faces structural challenges as part of the global economic system.

In reality, China's economy is still growing, though not at the double-digit rates of previous decades. According to the World Bank, China's GDP grew by 5.1 percent in 2023, which, while slower than its historical growth rates, is still robust by global standards. For comparison, the U.S. economy grew by approximately 2.4 percent during the same period. Despite the Western media's fixation on China's "slowing" economy, China remains the second-largest economy in the world and continues to contribute significantly to global economic growth.

In addition, China has been shifting from an export-driven model to one that emphasizes domestic consumption and technological innovation. The country has invested heavily in high-tech industries like artificial intelligence, renewable energy and electric vehicles. These investments are setting the stage for sustainable long-term growth.

Furthermore, China's Belt and Road Initiative is fostering infrastructure development across Asia, Africa and Europe, which not only supports China's economic goals but also stimulates growth in developing nations.

China's approach to the Global South

While the Western media focuses on internal challenges in China, it overlooks the significant strides the country has made in improving its trade relationships with the Global South. In recent years, China has implemented zero-tariff treatment on goods from the least developed countries, particularly in Africa. Removing tariffs creates opportunities for these countries to export to China and benefit from the world's largest consumer market. This not only strengthens China's trade ties but also contributes to the economic development of these countries.

For example, countries like Ethiopia and Rwanda, which have historically had limited access to major global markets, now have improved opportunities to export products like textiles and agricultural goods to China. China's decision to lower tariffs for developing nations stands in stark contrast to the actions of the U.S. and EU, both of which have imposed protectionist measures, including higher tariffs, on Chinese goods. The U.S., for instance, has implemented tariffs on over $360 billion worth of Chinese products as part of the ongoing trade war between the two nations.

This discrepancy in trade policy has led to a situation where the Western powers are effectively erecting trade barriers, not just against China, but against the very countries they claim to support. Higher tariffs on Chinese goods impact the broader supply chains that developing nations depend on.

Many countries in Africa and Latin America, for example, rely on Chinese machinery, infrastructure and investment for their own economic development. By imposing barriers to trade with China, the U.S. and EU are indirectly hindering the development of these nations.

The impact of Western tariffs on the global economy

The imposition of tariffs and other protectionist measures by Western countries is not only damaging to China but also poses a broader threat to global economic stability. Trade wars rarely benefit any of the parties involved; instead, they lead to higher prices for consumers, disruptions in supply chains and reduced economic growth. In the case of China, the tariffs imposed by the U.S. have had limited success in reducing the U.S. trade deficit; at the same time, they have increased costs for American manufacturers and consumers.

Moreover, the Western emphasis on tariffs reflects a broader retreat from globalization. The post-World War II economic order, built on free trade and open markets, is being eroded by these protectionist policies. This shift poses a particular risk for developing economies, which rely on open markets to export their goods and attract foreign investment. As Western nations turn inward, China is positioning itself as a champion of globalization, particularly through its engagement with the Global South.

Why barriers should be removed

For the global economy to thrive, trade barriers must be reduced, not increased. This is particularly true for trade between major economies like the U.S. and China, as their economic interactions have a ripple effect across the world. The tariffs imposed by Western nations on Chinese exports not only harm the Chinese economy but also affect global supply chains, raising prices and stifling economic growth in other countries.

More importantly, removing these barriers would benefit developing nations that are increasingly dependent on their trade relationships with China. Many countries in the Global South see China as a key partner in their economic development, not just because of trade, but also because of the investments China makes in infrastructure and technology.

Conclusion

The narrative that the Chinese economy is collapsing is, at best, an oversimplification and, at worst, a deliberate misrepresentation. While China faces challenges like any other major economy, it continues to grow and remains a pivotal player in the global economic system. Rather than building barriers, China is actively working to lower them, particularly for developing nations in the Global South.

In contrast, the Western approach of raising tariffs on Chinese goods creates unnecessary obstacles that hurt not only China but the global economy as a whole. To ensure future growth and stability, these barriers should be removed, fostering an environment of open trade that benefits all nations.

The article was first published by the Afghan Institute for Strategic and Regional Studies on October 6, 2024.

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