World News | China needs to rethink its economic focus, shifting to agriculture amid manufacturing and real estate crisis

Beijing [China]April 22 (ANI): Given the enormous challenges facing China’s manufacturing and real estate sectors, there is a growing need to rethink the country’s economic focus and shift towards agriculture, the Financial Post reported.

As China grapples with these economic uncertainties, realigning its economic strategy toward agricultural development may be a viable path to economic stability and growth.

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Despite the easing of COVID-19 measures earlier this year, the situation in China has not improved significantly, with many factories on the brink of closure and at risk of imminent closure. The harsh reality is that things don’t improve in 2023, although one hopes surviving 2022 will bring relief.

According to the “Financial Post” report, the global supply chain has undergone major changes, and many manufacturing companies in the region have not received any orders this year, resulting in an increasing number of factory closure notices.

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A potential downturn in the industrial sector could be faster and deeper than previously expected, and despite the prohibitive costs involved, only the defense industry seems willing to invest. However, even these businesses could face significant hurdles in securing funding, according to the Financial Post.

Furthermore, the real estate sector’s ability to weather the current manufacturing crisis is questionable. Any assumption that it will do so is dubious and wishful thinking.

The real estate market is facing major challenges, with a large number of properties struggling to sell. As of February, there were about 3.5 billion square feet of unsold completed homes in China, equivalent to about 4 million homes. About one-third of all newly built homes in China remain unsold by 2022, the highest proportion since 2015, the property consultancy estimates, the Financial Post reported.

Now is the time for the Chinese government to take urgent action to address the underlying problems that are driving these businesses down.

The plight of established players underscores the shortcomings of China’s economic policy and the urgent need for measures to save the troubled manufacturing sector.

While the idea of ​​shifting focus to agriculture might seem like a good solution to China’s economic woes, it’s important to note that the sector also has major challenges.

Agriculture is a highly competitive industry and China needs to invest heavily in R&D, technology and infrastructure to keep pace with other global players.

In addition, there are growing concerns about China’s aging population and its impact on the agricultural sector, as fewer young people are willing to work in agriculture, according to the Financial Post.

Additionally, China will need to address food security, which has become increasingly important in recent years due to the pandemic and geopolitical tensions.

The country has historically relied on food imports to meet its needs, but heightened trade tensions and supply chain disruptions have made that risky.

China has been investing heavily in domestic agriculture, especially food production, but it remains to be seen whether these efforts will be enough to ensure long-term food security, according to the Financial Post. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)