China
China’s Economic Securitization Puts Stability at Risk
For 25 years, forecasts anticipated China’s transition to a consumption-driven economy. However, geopolitical tensions shifted focus to a state-led techno-economy, prioritizing self-sufficiency over structural reforms, leaving many citizens behind.
The Shift in China’s Economic Strategy
For 25 years, economists anticipated a major transition in the Chinese economy towards consumption-driven growth as it became wealthier. The prevailing thought was that China would reduce its dependence on state-directed investment and exports. However, with escalating geopolitical tensions and restricted access to Western technologies, this expected shift has stalled.
Rise of a Techno-Economy
Instead of a market-oriented transformation, China has embraced a heavily securitized and state-led techno-economy. This decision is seen as a defensive move by the leadership to ensure the country’s resilience against external threats. The drive for technological self-sufficiency is now central to China’s strategy, aiming to protect against potential containment efforts by the West.
Trade-Offs in Policy Priorities
As highlighted by Anthony Saich, the recent 15th Five-Year Plan underscores President Xi Jinping’s focus on indigenous innovation. While the plan channels government resources into crucial sectors like biotechnology and green energy, it simultaneously neglects broader structural reforms, leaving many citizens and workers outside the high-tech economy struggling without adequate support.
Source : China’s economic securitisation leaves stability in the balance
