This study examines the role of government subsidies and private sector lending in stimulating China’s economic growth while assessing the prospects for expanding the social credit system. This study covers the period from 1990 to 2023 and is based on data from the National Bureau of Statistics of China, the World Bank and the International Monetary Fund. The paper applies theoretical analysis, as well as correlation and regression methods, to assess the long-term impact of various types of subsidies on macroeconomic indicators. The article examines theoretical models describing the relationship between social subsidies and economic growth and analyzes government subsidy programs. Special attention is given to the analysis of the social credit system, which evaluates the behavior of citizens and organizations, encouraging compliance with laws and regulations to enhance social stability and predictability in economic agents’ behavior. The findings demonstrate significant correlations between the volume of social subsidies and economic growth, indicating that social subsidies encourage household spending. However, the long-term effectiveness of subsidies in increasing productivity and innovation remains limited. In conclusion, it is noted that there is a need to improve the mechanisms for distributing subsidies and integrating the social credit system in order to achieve more effective economic growth, taking into account the need to maintain social stability in Chinese society.
This article analyses the sustainability of China’s economic growth in light of global challenges, focusing on macroeconomic changes in recent decades and their impact on the country’s economy. The study covers the period 1962-2022 and uses data from various sources, including the World Bank, International Monetary Fund, Organisation for Economic Cooperation and Development, and national statistical data from the People’s Republic of China. Correlation analysis methods are used to assess the impact of socio-economic indicators on economic growth, revealing signi cant correlations between gross domestic product and various indicators such as external debt, urbanisation, technological development, and the standard of living. The main conclusion of the analysis is that economic diversi cation and investment in high-tech industries are crucial for maintaining sustainable growth in China. The ndings indicate the need for future research assessing the potential for reducing the environmental impact of industrialisation and improving social policies in a changing global economy.