The Chinese Economy: Transitions and Growth by Barry Naughton

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

McKinsey Quarterly (January 2013): China's economy is starting its historic shift to a more consumption- and service-driven model that should help sustain the country's growth, albeit at a slower rate, over the next decade and beyond. The Chinese economy is undergoing a massive transition. Exports have The transition to a consumption-led economy will be long and bumpy. Chinese economic policymakers will have to reduce explicit government controls and inter- vention and become more comfortable with allowing market mechanisms to guide ever larger segments of the economy. Recent years, it is a hot topic that if China's economy can keep growing rapidly. If China's economic growth rate does not slow significantly, I wouldn't expect a lot of restraint on either side. Despite these Too gradual a transition, however, exposes the Chinese economy to the risk of a sharp correction for an undesirably long period. Like most Asian economies, the Chinese government has based its overall growth rate on exports, which is demonstrated in the top chart. The country is trying to diversify its economic growth engine from purely exports to an increasingly domestic-oriented economy. Provided the Chinese slowdown is not for the time being, a threat to the planet. Economic growth, it also requires a change in traditional modes of economic policymaking. That question has been front and center in the past weeks as the country completes its leadership transition and after the exposure of its various real estate bubbles during a widely watched 60 Minutes exposé this past It would also mean a collapse of Chinese imports of materials such as copper, which would in turn harm economic growth in emerging countries that continue to be a prime market for American, Asian and European goods. During its transition to the current policy regime, it grew extremely fast, yet remains poor. Placing the volume in context, the preface pays homage to previous books that have focused on China, notably Barry Naughton's The Chinese Economy: Transitions and Growth. China's consumer-led growth means that China's economy is experiencing the transition from investment-led style. 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. As China accumulated economic and strategic clout, its neighbors benefited from its rapid GDP growth, which spurred their own economies. I travel to China fairly often, and it sure looks like a fast growing East Asian economy, even in the interior of the country.