Renowned economist Stephen Roach has raised concerns about China’s economic growth, citing data from the IMF showing a decline in its global growth contribution. Roach, known for his pessimistic views on China, highlighted weakening total factor productivity and strained China-US relations as key factors. He drew parallels between China’s current challenges and Japan’s economic woes of the past. Despite the IMF’s recent growth forecast upgrade for China, Roach believes the country’s growth remains sluggish.
Roach emphasized the need for China to shift support towards high-productivity sectors like technology companies to spur economic growth. Criticizing US tariffs on Chinese electric vehicles, he warned against escalating trade tensions. Roach’s cautionary outlook reflects broader concerns about China’s economic trajectory and its implications for global markets.