The article highlights the contrasting perceptions of China's economy. One view sees it as a technological leader with companies like DeepSeek, BYD, and Huawei driving innovation. Another view depicts China as facing economic challenges like sluggish consumer spending, rising unemployment, and a housing crisis.
The author argues that understanding both aspects of China's economy is crucial for the US, particularly as President Trump negotiated trade deals. Simply fearing China's successes or solely focusing on its economic difficulties provides an incomplete picture.
The key takeaway is that both views of China's economic reality coexist. A comprehensive understanding is necessary for informed policy-making and effective engagement with the country.
Two Chinas inhabit the American imagination: One is a technology and manufacturing superpower poised to lead the world. The other is an economy that’s on the verge of collapse.
Each reflects a real aspect of China.
One China — let’s call it hopeful China — is defined by companies like the A.I. start-up DeepSeek, the electric vehicle giant BYD and the tech powerhouse Huawei. All are innovation leaders.
Jensen Huang, the chief executive of the Silicon Valley chip giant Nvidia, said China was “not behind” the United States in artificial intelligence development. Quite a few pundits have declared that China would dominate the 21st century.
The other China — gloomy China — tells a different story: sluggish consumer spending, rising unemployment, a chronic housing crisis and a business community bracing for the impact of the trade war.
President Trump, as he tries to negotiate a resolution of a trade war, must reckon with both versions of America’s arch geopolitical rival.
The stakes have never been higher to understand China. It’s not enough to fear its successes, or take solace in its economic hardships. To know America’s biggest rival requires seeing how the two Chinas are able to coexist.
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