China’s Economy is Undergoing a Great Transition, Not a Great Decline | articles

Rapid industrialization has always had consequences, including heavy pollution. In the early 2010s, China faced a crisis with heavy smog and PM 2.5 pollution that led to major respiratory illnesses nationwide. This prompted a shift towards greener growth as a clear policy priority, which has proven successful in reducing pollution levels and carbon intensity over the past decade.

The World Bank estimates that meeting China’s long-term policy goals of reaching Peak Carbon by 2030 and achieving full carbon neutralization by 2060 will require significant investment in green infrastructure and technology, totaling USD 14-17tn. Despite the potentially lower multiplier effect of green infrastructure investments compared to traditional sectors, they are still seen as crucial for productive fiscal policy in China.

Some criticisms have been raised regarding industrial policies leading to overcapacity and global market dumping. For instance, the solar industry in the 2010s is often cited as an example, with concerns that the current New Energy Vehicles (NEV) industry may face similar challenges. Critics question the impact of Chinese policies on fair competition and the fate of companies that may fail as a result. However, we believe these criticisms overlook the broader benefits of China’s approach towards greener growth.

Despite some challenges, China’s efforts are positioning it to be competitive in key industries of the future, which aligns with its broader economic goals. By focusing on sustainable development and investing heavily in green infrastructure and technology, China is setting itself up for long-term success while also addressing pressing environmental concerns.

By Samantha Johnson

As a content writer at newsnmio.com, I craft engaging and informative articles that aim to captivate readers and provide them with valuable insights. With a background in journalism and a passion for storytelling, I thoroughly enjoy delving into diverse topics, conducting research, and producing compelling content that resonates with our audience. From breaking news pieces to in-depth features, I strive to deliver content that is both accurate and engaging, constantly seeking to bring fresh perspectives to our readers. Collaborating with a talented team of editors and journalists, I am committed to maintaining the high standards of journalism upheld by our publication.

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