China’s growth model is no longer suited to the global economy, Mohamed El-Erian says

• China’s growth model is no longer suited to the global economy, Mohamed El-Erian said.
• Exports have fallen, and growth in Europe and the US will likely be muted for the foreseeable future, he said. 
• “China cannot count on globalization to rescue its faltering growth model.”

China’s disappointing post-COVID recovery highlights the country’s misalignment with the global economy, Mohamed El-Erian wrote.

After an initial burst of first-quarter growth, China’s industrial output, investment, and consumer activity have all cooled sharply. The country now teeters on the edge of deflation, while second-quarter GDP pointed to continued weakness.