In recent years, there has been a notable shift among certain Western politicians, media outlets and think tanks regarding their perspective on China’s developmental trajectory. The once-popular theory of an imminent Chinese collapse, famously asserted by Gordon G. Chang over two decades ago, has finally begun to lose traction. But there is still a lingering … Read more
It’s clear that China’s efforts to build confidence in its slowing economy will top the agenda of its ceremonial legislature, the National People’s Congress (NPC), which convenes Tuesday in Beijing. What remains unclear is how the ruling Communist Party can navigate toward stronger, sustained growth as China’s workforce is aging, relations with Washington are fraught, … Read more
China presents a compelling case of the growth paradox, where robust economic indicators mask underlying disparities and societal sentiments. The dichotomy between China’s impressive economic figures and the lived realities of its businesses and people indicates how these contradictions coexist. Understanding these divides and seeking solutions to bridge them can have a significant impact on … Read more
Advertisement As China modernizes, one of the constant fears of the country’s leadership and academia has been the middle income trap. Originally introduced by World Bank economists Indermit Gill and Homi Kharas, this trap occurs when a country’s income rises to the point where its labor costs make exports uncompetitive when compared to low income … Read more
Advertisement There is very little doubt that the Chinese economy is currently in dire straits. Not only have property prices fallen for two years now, but there are also concerns about the economy entering a period of deflation (or persistently falling prices). A deflationary spiral works in the same way as an inflationary one, except … Read more
Advertisement Over the last few decades, one of the main engines of Chinese growth has been the real estate sector. Growing at breakneck speeds, the sector demanded cement, iron, and various other components at rates that ended up establishing an entire supply chain in and out of China. More importantly, real estate growth was fueled … Read more
Advertisement In the late 1980s, the United States, supported by its dominant position in the International Monetary Fund (IMF) and the World Bank, proposed and widely advocated for the so-called Washington Consensus, which, among other ideas, called on governments to implement a free-market economy that emphasizes less government intervention. It has also been argued in … Read more