China’s Economic Paradox

Term

China’s Economic Paradox

Definition

China’s Economic Paradox, as identified by Yuen Yuen Ang, refers to the coexistence of an impressive tech boom and a persistent growth slowdown in Xi Jinping’s China. 

For full definition, see glossary entry.

Selected Media Quote

The Economist (2026). "China is innovative. Its economy is a mess. Which will win out?”

At no time in modern history has a large country gone all in on investment in high-end technology while also navigating a slowing economy and a local government debt crisis, notes Yuen Yuen Ang of Johns Hopkins University. Although the drag from the property crash will lessen over the next few years, and eventually disappear, it would not take much to choke the new growth engine. It is already being stress-tested by weakening demand for Chinese EVs, a prolonged trade war and an energy crisis. China’s paramount leader, Xi Jinping, is nevertheless betting that the new model of growth kicks in faster than the old one, driven by land sales and construction, collapses. It is a high-stakes gamble.