China's Economic Challenges and Governance Issues

China's economic model and trajectory are facing significant challenges, according to George Magnus, an expert on China. He highlights that China's economic ascendancy, which was once seen as inevitable, is now called into question. Magnus attributes these challenges to a shift in China's governance structure and performance metrics under President Xi Jinping. He argues that the problems faced by China, including debt, rapid aging of the population, and reduced productivity growth, are largely homemade and require a significant overhaul of the current economic model. However, political constraints make it unlikely for the Communist Party to embrace such changes under Xi Jinping's government.