China is Attached to a Doomed Economic Model
China's economic model, characterized by government subsidies and an export-driven approach, is causing significant disruptions in the global economy. This strategy not only harms international competitors but also negatively impacts the Chinese economy itself, leading to weak consumer spending and job competition. As China continues to prioritize its manufacturing dominance, the long-term viability of this model remains questionable.
- ▪China's trade surplus reached a record $1.2 trillion last year, the largest ever for any country.
- ▪Xi Jinping's policies are leading to job losses in advanced economies, including 10,000 manufacturing jobs a month in Germany.
- ▪Chinese families are subsidizing global consumers while experiencing a decline in their own quality of life.
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GlobalChina is Attached to a Doomed Economic ModelAmerican and Chinese workers are paying a high price for all the cheap goods.By Michael SchumanIllustration by Matteo Giuseppe Pani / The Atlantic. Source: Vincent Thian-Pool / Getty.June 3, 2026, 9:55 AM ET ShareSave Some economists assumed that the buying power of China’s expanding middle class would ultimately fuel global growth. China has instead become a destabilizing force in the global economy. Chinese President Xi Jinping is running the country as a government-subsidized, export-driven manufacturing juggernaut. This policy is not just bad for whole industries around the world; it’s also distorting China’s economy and alienating trading partners.Chinese manufacturers would be competitive without Xi’s help.
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