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U.S. Economist Refutes Reports of “Chinese Economic Collapse”

A renowned U.S. economist has said reports in the U.S. press about so-called “Chinese economic calamity” or “collapse” are “stupid,” noting that China is a dynamic and innovative economy, with plenty of development ahead.

“There have been many silly — I’d even use a stronger language — stupid articles in the U.S. press about the Chinese economic calamity, the collapse or coming crisis of China,” Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, told Xinhua in a remote video interview earlier this week. “I don’t believe that.”

Noting that China is a dynamic and innovative economy, the renowned economist said China is “successful at low-cost, high-quality production of many of the most important goods and services the world needs right now,” such as photovoltaics, wind turbines, batteries for zero carbon energy, electric vehicles, fast rail and 5G.

“All of these areas are areas where China is highly competitive,” he said.

Sachs noted that China also provides financing to many developing countries through platforms such as the Belt and Road Initiative to “help invest in these technologies and in China’s low-cost and high-quality infrastructure goods and capital goods.”

Furthermore, Sachs argued that “China has a big market worldwide and a big export growth ahead.”

He noted that the growth in China’s exports is not solely attributed to the U.S. market — which closed up to some extent — but “to most of the developing world, which is the fastest growing part of the world economy.”

“So when I look at China, I see a lot of innovation, high-quality workforce, advances in many key technologies, and the ability to be the low-cost producer of the goods and services that we need for sustainable development,” said Sachs.

“All of that, to my mind,” Sachs said, “means China has a lot of successful development ahead that will be of real benefit to the whole world.”