Old predictions about China’s impending economic collapse still circulate. The latest such prediction comes from President Joe Biden, who claimed that China’s economy is on the brink. “Where is it going to grow? You’ve got an economy that’s on the brink there. The idea that their economy is booming? Give me a break,” Biden told Time magazine.
It’s almost laughable. The same alarmist rhetoric from decades ago is still being peddled, and it’s the usual suspects in Washington doing the fearmongering. These politicians should give the world a break with their baseless China-bashing.
It’s always the same crowd in D.C. that sees China’s economic achievements as a threat to U.S. dominance. For decades, they’ve clung to this “China collapse” fantasy, revealing more about their own insecurities than anything real about China’s economy.
They’ve cited everything from demographic issues to over-leveraged debt and environmental problems. Sure, these are challenges, but the narrative conveniently ignores China’s adaptability and its government’s ability to reform and weather economic storms.
Biden made his claim just as the International Monetary Fund (IMF) raised its forecast for China’s GDP growth in 2024 from 4.6 percent to 5 percent. According to the IMF’s First Deputy Managing Director, Gita Gopinath, this upward revision was driven by strong first-quarter growth and recent policy measures. She noted that the Chinese government is effectively addressing vulnerabilities in the property sector, local government debts, and smaller financial institutions.
The “China collapse” theory is doomed to fail because it’s not based on facts, especially considering China’s numerous new growth engines. Take the clean energy sector, for instance. China is leading the charge in the electric vehicle (EV) industry, which is a real thorn in Washington’s side. They’ve built a comprehensive domestic industrial chain, covering everything from batteries to complete vehicles.
This vertical integration doesn’t just strengthen China’s EV market—it cements its status as a global leader in green technology.
The relentless “China collapse” predictions are more about the strategic interests and insecurities of those pushing them than about China’s actual development. As British online magazine Spiked put it, today’s doom-mongering says more about the Western elite’s sense of confusion, inertia, and impotence than about anything happening in China. They take comfort in the fantasy of China’s imminent collapse, ignoring their own problems and the potential benefits of cooperation with China.
So, let’s be clear: the world has changed, and it’s time for the narratives and the zero-sum mentality of US politicians to change as well.
