Nikkei Asia reported on Dec. 15 a forecast from Japan Center for Economic Research JCER. The forecast shows that China’s GDP will surpass the United States in 2033 rather than 2029—which is four or five years different from last year’s estimate.
The latest forecast weighs in that Beijing is damaging the country’s growth potential by dragging down its tech and other big industries with political control. Recently, Beijing’s cracked down on the critical high-tech industry in its own country. Evergrande’s default started a chain effect on China’s economy and impacted its growth rate.
The revisions come after China’s government tightened controls on large internet service providers and other private-sector businesses, slowing worker productivity growth. Furthermore, following the implementation of stronger financial laws to restrain excessive real estate investment, investment is projected to decline.