China in 2035: superpower or collapse? Economists weigh the most likely scenario

As China continues to rise as a global power, the question of what the country will look like in 2035 is on the minds of economists and geopolitical experts alike. Recently, China’s foray into artificial intelligence with DeepSeek, a rival to ChatGPT, has reignited debates on its ambitions to become the world’s largest economy. But will China reach the top, or will it face a sharp decline? François Godement, special advisor at the Montaigne Institute, offers a nuanced analysis of China’s future, outlining four potential scenarios for the next decade.

A Superpower at the Top

Godement’s first scenario presents the idea of China reaching the pinnacle of global power by 2035. With its technological advancements, growing influence, and strong economic performance, China could solidify its position as the world’s dominant economic and political force. The country’s investments in artificial intelligence, green energy, and infrastructure have already positioned it as a key player in the global market. However, as Godement points out, this scenario is dependent on the country maintaining its momentum without facing significant internal or external challenges.

A Strong but Not Dominant China

In the second scenario, China maintains its position in the top tier of global powers but falls short of reaching the top. While still powerful, its growth might be hindered by a number of factors, such as international competition, domestic challenges, or economic slowdowns. The country’s rise might be tempered by the efforts of other nations to counterbalance its influence. In this case, China would remain a major player, but its ambition to become the world’s number one economy could be stifled by global rivalries and internal struggles.

The End of China’s Economic Miracle

The third scenario involves the collapse of China’s economic and technological miracle. This could result from a combination of factors, such as a demographic crisis, economic stagnation, or political instability. China’s aging population and declining birth rate pose a significant threat to its long-term economic growth. As the country’s labor force shrinks, its productivity may decline, further stalling growth. Additionally, the authoritarian regime may face increasing resistance, as citizens grow disillusioned with the government’s control over economic innovation and personal freedoms.

A Crisis of Regime and Systemic Failure

The fourth and most alarming scenario imagines a crisis of regime and systemic collapse. Godement argues that if China’s political system falters—perhaps due to external pressure or internal discontent—the country could face a breakdown that significantly alters its trajectory. This could result in economic collapse, social unrest, and geopolitical instability, severely impacting not only China but the broader global economy. The potential for conflict over Taiwan and territorial disputes could also escalate into a major crisis that destabilizes the region.

What Makes the Difference?

Godement suggests that the path China takes over the next decade will not solely depend on its own decisions. It will also be shaped by how other nations react to its rise. In the past, China’s growth was largely driven by internal factors, but today, geopolitical tensions and the global response play a critical role. China’s continued expansion may be met with resistance, particularly from the United States, the European Union, and other Asian powers. The trade war, technological rivalry, and political challenges could determine how China navigates its future ambitions.

The Potential Threat of Global Fragmentation

Another key concern for China is the fragmentation of global trade. As the world becomes more divided, with economic blocs forming along geopolitical lines, China may face challenges in maintaining its position as the world’s manufacturing hub. While the country remains a dominant exporter—especially in sectors like electronics, batteries, and solar energy—a fragmented global trade system could limit its access to key markets.

The shift toward regional trade agreements and sanctions could hamper China’s growth, although it’s also possible that China could leverage its influence to create new trade alliances. The country has already shown a capacity for adaptation, shifting its focus toward emerging markets in Asia, Africa, and Latin America.

China’s Technological Edge

Despite potential setbacks, China is making significant progress in technology. From AI and electric vehicles to solar energy and battery technology, China has established itself as a global leader in green technology. Its advances in artificial intelligence, highlighted by DeepSeek’s recent rise, place the country in a strong position to drive the future of tech.

But will technological innovation alone be enough? Godement suggests that while China’s progress in technological futurism could propel it to new heights, the demographic decline and the lack of trust in the country’s savings system may limit its long-term economic stability.

The Risk of Taiwan and Overconfidence

A key point of concern for the future of China is the Taiwan issue. The potential for military conflict over Taiwan could not only derail China’s growth but also ignite a wider regional crisis. Godement warns that Xi Jinping’s ambition to unify Taiwan with mainland China could lead to serious consequences. While China may believe it can succeed militarily, the international response—especially from the United States and its allies—could be far more significant than anticipated.

This overconfidence, fueled by recent successes in other areas, could push China to take risky actions that jeopardize its future.

Conclusion: China’s Future Remains Uncertain

Looking ahead to 2035, the future of China remains uncertain, with several possible paths depending on both domestic factors and global reactions. While technological innovation and economic growth have placed China on the brink of superpower status, demographic challenges, geopolitical tensions, and internal issues may limit its ability to reach the top. Whether China will become the world’s leading power or face a period of instability and decline depends on a complex interplay of factors that will unfold over the next decade. For now, the world watches closely as China navigates these uncertain waters.

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