{"id":708753,"date":"2026-06-01T18:27:15","date_gmt":"2026-06-01T18:27:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/708753\/"},"modified":"2026-06-01T18:27:15","modified_gmt":"2026-06-01T18:27:15","slug":"chinas-investment-driven-role-in-global-growth-is-underestimated-study-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/708753\/","title":{"rendered":"China\u2019s investment-driven role in global growth is underestimated, study says"},"content":{"rendered":"<p>China\u2019s contribution to global growth is underestimated while the <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/economy\/china-economy\/article\/3354913\/chinas-yuan-gains-ground-international-trade-room-grow-goldman-sachs-says?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">yuan is positioned<\/a> to emerge as a fundamentally strong global currency, according to a new study from a prominent Beijing-based think tank.Researchers from the <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/topics\/china-finance-40-forum?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">China Finance 40 Forum (CF40)<\/a> \u2013 comprising senior regulators and financial experts \u2013 said the country\u2019s investment scale could be as much as 3.4 times that of the United States when measured by the volume of physical investment.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The analysis, published in a note on Sunday, far exceeds estimates based on commonly used international metrics and comes as Beijing seeks to further expand its economic and financial influence.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cChina\u2019s contribution to global growth and the spillover effects of its economic fluctuations are both likely to be insufficiently understood,\u201d the authors wrote.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The think tank attributed the gap to the relatively low cost of investment goods in China, which it estimated at about 37 per cent of US levels. On that basis, it calculated an investment purchasing power parity of 2.6 yuan per US dollar \u2013 stronger than market rates and widely used estimates.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cAs China\u2019s economy recovers and transitions from the old to the new economy, rising prices are expected to bring the yuan\u2019s valuation closer to its fundamentals, supporting its emergence as a strong currency,\u201d the note\u2019s authors wrote.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s contribution to global growth is underestimated while the yuan is positioned to emerge as a fundamentally strong&hellip;\n","protected":false},"author":2,"featured_media":708754,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,3686,99,512,344649,4690,164,22464,1055,2489,5300,65279],"class_list":["post-708753","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-beijing","tag-business","tag-china","tag-china-finance-forum","tag-chinese","tag-economy","tag-goldman-sachs","tag-united-states","tag-us","tag-us-dollar","tag-yuan"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/708753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=708753"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/708753\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/708754"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=708753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=708753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=708753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}