Under the leadership of Xi Jinping, China has been moving away from the path of liberalization and economic reform that had propelled the country to record growth. Centralizing decision-making power has allowed Xi to silence opposition and restrict freedoms, while also pausing reforms in the private sector. These actions have had a negative impact on China’s economic growth and deterred foreign investment.
Prior to the pandemic, it was predicted that China would surpass the United States in GDP by 2035. However, with the slower growth and increasing mismanagement under Xi, as well as a demographic crisis looming, it may now take much longer for China to achieve this milestone, if at all. The aggressive foreign policies of China have also led to trade and investment being redirected to other countries, further hindering its economic potential.