---

---

● Bleeding U.S., Brain-Searching China

Analysis of the Future Turning Point of Chinese and American Economies – Missing Middle, Capital Market Activation, and Restructuring of Manufacturing

1. Overall Economic Structure Changes and Key Issues

The structural weaknesses of China and the United States in the economic sphere are noticeable.
The United States has a good head and a lot of money, but the ‘missing middle,’ which is the manufacturing base, is in poor condition.
On the other hand, China has a strong body, but it has historically lacked in terms of head, that is, technology and brain.
The key is whether the United States will fill that gap in the next 10 years or whether China will take over brain control even faster.
This article will take a closer look at these two major issues and their impact on the overall global economy.

2. Shift in Capital Market Landscape and Surge in M&A Deals

Recently, the number of M&A disclosures in the Chinese capital market has surged.
It has increased significantly from 130 cases last year to 640 cases in just two months this year.
This is interpreted as an intention to secure growth engines in the fields of technology, AI, and new manufacturing, beyond simply raising funds for listed companies.
China, which used to focus on real estate or debt problems, is now clearly preparing for the future by utilizing the capital market.
This will be analyzed in depth along with SEO keywords such as economic outlook, global economy, and capital market activation.

3. Restructuring of Manufacturing and Rise of AI and Tech Industries

The United States is already showing a downward trend in the manufacturing sector.
If the missing middle is not filled, it will be difficult for the United States to quickly replace its technology and manufacturing capabilities.
Meanwhile, China is rapidly emerging in new technology fields such as AI, robotics, and digital transformation, along with manufacturing innovation.
By breaking away from the existing manufacturing-oriented paradigm and focusing on AI technology and high-tech industries, it is trying to secure new competitiveness in the global market.
This poses both great opportunities for investors and new risk factors for the US and the global economy as a whole.

4. Reorganization of Government Policies, Fiscal and Monetary Policies

The Chinese government is seeking to revitalize the economy through various policy measures announced at the Two Sessions (两会).
It is actively addressing fiscal deficit rates, raising funds through special national bonds and special purpose bonds, and resolving real estate and local debt problems.
In addition, government-led M&A and capital market reform policies are interpreted as positive signals for private companies to start businesses and expand overseas.
The United States has low predictability due to uncertain policy shifts and internal structural problems, while China is gradually showing a clear policy direction.

5. Global Economic Outlook and Investment Strategy

These economic changes in China and the United States will be catalysts for global economic restructuring in the long term, even if there is short-term uncertainty.
With the activation of China’s capital market and the progress of real estate, manufacturing, and AI technology development, global investment opportunities are expected to expand.
In particular, the phenomenon of young entrepreneurs emerging as China’s entrepreneurial ecosystem becomes active is attracting attention as a new growth engine.
Investors need to balance their investment portfolios by considering both the manufacturing crisis in the United States and the changes in technology and capital markets in China.
It is necessary to reorganize the strategy focusing on these five keywords: economic outlook, global economy, manufacturing, capital market, and AI technology.

< Summary >
China and the United States have different structural weaknesses.
The United States is showing a noticeable weakening of the manufacturing base due to the missing middle problem, and China is actively utilizing the capital market while supplementing the lack of brain in the past.
China's surge in M&A deals and government-led policies are signals of the rise of the AI/tech industry and the establishment of new growth engines.
The reorganization of the government's fiscal and monetary policies is resolving real estate and local debt problems, and a global economic shift is underway.
Investors need to comprehensively analyze issues related to economic outlook, global economy, manufacturing, capital market, and AI technology to develop long-term investment strategies.

[Related Posts…]
The Future of China's Capital Market Activation
US Manufacturing Crisis and Response Strategies

*YouTube Source: [이효석아카데미]

– 허리가 날아가버린 미국, 좋은 머리를 찾아야 하는 중국ㅣ신형관 중국자본연구소 대표 [풀영상]