The Chinese Economy: Transitions and Growth by Barry Naughton

The Chinese Economy: Transitions and Growth Barry Naughton ebook
Page: 504
ISBN: 0262140950, 9781429455343
Format: pdf
Publisher:

Starting with the opening of agriculture to private incentives in the late 1970s, China has experienced faster and more prolonged economic growth than any other country. A slight acceleration in Chinese economic growth at the end of last year is reinforcing the common narrative that China's expansion is a threat to other nations, including the United States. In a mere three decades China has moved from a to Germany (1.28%/ year). These platform companies borrowed heavily from banks during the stimulus, financing a rapid build out of infrastructure that helped sustain economic growth despite the ongoing global turmoil. Chinese premiere Wen Jiabao has made clear that stabilizing China's economic growth is a priority and markets are likely to be positive on this GDP data since they now expect more policy easing measures. If China is able to implement a smooth transition to the democracy (that did not occured in the USSR), i predict that china will attain the "technological frontier" somewhere near the year 2050. In a paper, Li Zuojun, deputy director at the Development Research Center of the State Council (DRC) writes that after 30 years of rapid growth, China is beginning to restructure. On the side of western-style democracy stood Minxin Pei, the director of the Keck Center for International and Strategic Studies at Claremont McKenna College and author of China's Trapped Transition: The Limits of Developmental Autocracy in which Pei examines the sustainability of the Chinese On the economic front, China's growth has been driven by investments at home and exports to developed countries—trends that are not sustainable in the long run. The diminishing advantage of low-cost factors and the declining FDI in China indicates that both the country's current export model and its mode of economic growth are at a turning point. As Chinese data continues to deteriorate, housing continues to show weakness and bad debts rise, some take solace in the fact that this is all part of China's plan to rebalance its economy and cool growth. The country's balance sheet continues to deteriorate – and the most recent growth spurt implies faster deterioration – and this, ultimately, is the main constraint of the Chinese growth model." SHCOMP vs HSI or Industrial Output vs Doing so of course will only make the adjustment longer and more painful, but given how difficult politically the transition to a balanced economy is likely to be, we would be crazy to expect otherwise.