Insights | U.S. Scholar: China has weathered the storm to maintain growth

By Wu Jiaju

(ECNS) --As for China's opening up, Einar Tangen, senior fellow at Taihe Institute, told ECNS that the country is the manufacturing hub of the world, which is why it’s essential."China produces a tremendous amount of intermediate goods, basic goods, everything from cloth to chemicals, everything that we have from consumer goods to vitamins," he said.

" China’s opening up is going to be a real boom for the world," Tangen added.

Tangen pointed out that there are basically three caps out there talking about China in 2023. The first includes the World Bank, IMF, ADB etc.. The second is the moneymen, such as Goldman Sachs, JP Morgan, the Economist Intelligence Unit, and the Conference Board. The third comprises Chinese economists.

In Tangen's opinion, the IMF and ADB are looking at the past. They say they’ve seen a lot of problems and things like that.

The moneymen, such as Goldman Sachs, are looking at the present in the short-term future, and they see a lot of opportunities as China “has managed to weather the storm andkept growing”.

To Tangen, Chinese economists see 40 years of the past and the achievements are sure to extendto the future. “They know that there's a tremendous amount of pent-up demand”,he said.

He believes that there's $17 trillion of savings that the Chinese currently have in their pockets. "All it takes is to unleash a part of that, not saying you should get rid of your savings, but part of that is confidence, and that's exactly what is needed in the world today," he pointed out.

"Some countries criticize China on a daily basis, because they're afraid of China's success, and that it will somehow make their system look bad,"said Tangen.

He noticed that in 40 years China had lifted its people out of poverty into the middle class, which is an economic miracle as this country started with basically nothing.

"Yet 40 years later, look where China is. That is an existential threat to the ideal ideology of American exceptionalism," he said.

Tangen introduced American exceptionalism, which stands for the idea that America has the only democratic liberal capitalism system that works and that all countries have to adopt it.

"If another country adopts a different model and is even more successful than the U.S.,then all of a sudden, the U.S. is in defensive mode, and as are other countries who have experienced the same thing," said Tangen.

"These countries criticize China on a daily basis, and it comes down to one thing: they're afraid of China's success, and that it'll somehow make their system look bad," said he.

However, Tangen pointed out that China isn't saying "adopt the Chinese system", but that every country has its own path, and should be allowed to choose what is successful for it without the interference of other countries.

"Unfortunately, this is very hard to accept for some countries, especially the U.S.," he concluded.