China’s growth will likely be slower just based on the domestic factors alone, said Mr Lee. He added that external pressures and uncertainties are compounding the matter, particularly by affecting cross-border trade and investments. As a result, China has been placing more emphasis on political, social and national security considerations.
“Economic development is still of high importance (to China), but is no longer the pre-eminent national priority. Policy trade-offs are unavoidable, and will imply less exuberant economic growth for China,” said Mr Lee.
However, the senior minister warned it would be both “short-sighted” and “unwise” to write China off.
“China’s development is an enterprise that will take 100 years. It has shown that it can take a strategic perspective to maintain consistent policies and direction over the long term, riding through transient ups and downs in its development journey,” Mr Lee pointed out.
The Chinese economy retains “considerable capacity” to grow, considering the untapped potential in its workforce and higher productivity from an increasingly urbanised population, he added.
Mr Lee also singled out China’s tech prowess as a key factor. He noted that Chinese companies have already established themselves as market leaders in industries such as electric vehicles, batteries, and solar panels.
“Increasingly, Chinese companies are competing as equals, rather than from a catch-up position. In fact, in some industries, Chinese companies have been so successful that it is causing concern to China’s trading partners,” added Mr Lee.
At the same time, Mr Lee highlighted the collective determination of the Chinese people as a pivotal element.
“We must never underestimate the Chinese people’s determination for their nation to succeed and stand tall in the world. This is a driving ambition. Its impact cannot be captured in economic statistics, but it will make all the difference.”
