Despite China’s vows, market-reform progress remains ‘stagnated’, report finds

But China has outperformed large developed economies in terms of openness to trade, according to the latest China Pathfinder assessment

‘This is not the Chinese economy of the past decade,’ policy expert says, calling it ‘weaker and more fragile’

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In terms of its openness to trade, China has been outperforming large developed economies such as Italy and South Korea, according to a new report. Photo: AFP

Published: 12:00am, 13 Oct 2022Updated: 12:51am, 13 Oct 2022

China’s progress in implementing market reforms has become “stagnated” in key areas, including competitiveness and openness to investment, according to findings outlined in an updated assessment of China’s economic development.

Although the country’s progress has been “undeniable” by specific metrics, headwinds from the US-China trade war and fears over an exodus of foreign investment have dampened outlooks, according to the latest China Pathfinder report published by the Atlantic Council and Rhodium Group on Tuesday.

“Policymakers should recognise a new reality: this is not the Chinese economy of the past decade. While China remains a heavyweight, it is undeniably weaker and more fragile than before the pandemic,” said Josh Lipsky, senior director of the Atlantic Council’s GeoEconomics Centre.

The report’s release comes amid a rise in observers’ concerns over China’s apparent inward turn as the nation copes with a slumping economy and increasingly strained geopolitical tensions with the West.

With the 20th party congress just days away, the report said policymakers should make a “clear statement” on their intentions for market reforms and reopening the economy.

“The Party’s zero-Covid policy is straining the economic, political and social fabric of the country,” the report said. “Foreign companies, as well as governments, are increasingly sceptical about their investments in the Chinese market.

Despite China’s vows, market-reform progress remains ‘stagnated’, report finds

But China has outperformed large developed economies in terms of openness to trade, according to the latest China Pathfinder assessment ‘This is not the Chinese economy of the past decade,’ policy expert says, calling it ‘weaker and more fragile’

But China has outperformed large developed economies in terms of openness to trade, according to the latest China Pathfinder assessment

‘This is not the Chinese economy of the past decade,’ policy expert says, calling it ‘weaker and more fragile’