Ruchir Sharma, chairman of Rockefeller International, argues that China's aggressive push into artificial intelligence is failing to arrest a broader economic decline.
In an op-ed for the Financial Times, Sharma contends that the country's actual economic growth has stalled near zero, significantly underperforming the official target of 4.5% to 5% and lagging behind peers including the United States.
5%. This decline in relative size suggests that despite high-profile investments in technology sectors, the underlying macroeconomic engine is losing momentum.
Sharma points to a structural shift in China's global economic weight as evidence of this slowdown.
He notes that China's share of global nominal GDP peaked in 2021 at 18% and has since contracted to 16.5%.
This decline in relative size suggests that despite high-profile investments in technology sectors, the underlying macroeconomic engine is losing momentum.
The assessment adds to growing skepticism among international investors regarding the sustainability of China's growth model.