He emphasizes that internal problems such as economic instability, demographic shifts, and the unsustainable debt levels of local governments are critical issues overshadowing China’s international ambitions.
McCarthy highlights that the Chinese government’s efforts to stimulate the economy through policies like infrastructure investment have led to diminishing returns, and reforms aimed at fixing structural problems are lacking.
These domestic struggles have broader implications, affecting China’s global economic influence and its ability to sustain growth in the long term.