China Unlikely to Pursue Major Stimulus, Dampening Prospects of Overtaking US Economy

It's highly unlikely China will implement large stimulus measures, says Mohamed El-Erian. This may dampen views it will overtake the US economy.
After a brief rebound, China's economy has disappointed recently with weak consumption, industry, investment and exports.
Beijing is unlikely to pursue past stimulus strategies due to high debt levels and property market issues. Smaller measures are being used instead.
China faces challenges transitioning to new growth industries like green energy and AI. Larger debt restructuring may be needed.
Bloomberg Economics also predicts China is unlikely to permanently overtake the US economy, with growth slowing to 1% by 2050.

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