Global investors may be underestimating China's economic resilience and innovation edge, according to Deutsche Bank's latest analysis, which challenges popular narratives about the nation's growth trajectory. The report highlights how Chinese companies are redefining competitiveness in high-value sectors like AI and advanced manufacturing while maintaining GDP growth rates that outpace major Western economies.
Innovation Beyond the Headlines
The bank's Hong Kong-based analyst Peter Milliken points to breakthroughs like AI model DeepSeek as evidence of China's technical prowess, noting: 'Chinese companies now offer better value and quality across manufacturing and increasingly in services.' The analysis cites 70% global adoption of Chinese industrial robots as a key productivity driver.
Growth in Perspective
Despite 2023's 'modest' 5% GDP growth, China still expanded faster than all G7 economies. The report compares current concerns to historical growth patterns: 'What seems slow today could be seen as miraculous tomorrow.' It notes that Japan maintained 4% growth during its 1980s economic golden age – lower than China's current rate.
Aging Population, New Solutions
While demographic challenges persist, Deutsche Bank identifies two unique advantages:
1) World-leading automation adoption
2) The Belt and Road Initiative’s emerging market connections
These could help transform China's economic model, leveraging technology and global partnerships to offset workforce constraints.
Reference(s):
cgtn.com
