Commentary
Michael Pettis
{
"authors": [
"Michael Pettis"
],
"type": "legacyinthemedia",
"centerAffiliationAll": "dc",
"centers": [
"Carnegie Endowment for International Peace"
],
"collections": [],
"englishNewsletterAll": "asia",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "AP",
"programs": [
"Asia"
],
"projects": [],
"regions": [
"East Asia",
"China"
],
"topics": [
"Economy"
]
}
Source: Getty
In The Media
The Need for Slower Chinese Growth
The high amount of debt, rather than the reported high amount of growth, should be the major concern of those watching China’s markets.
Published on Jul 15, 2015
Source: CNBC
On CNBC, Michael Pettis discussed why he hoped for a slowdown in Chinese economic growth. He said that as China’s economy moves away from investment to consumption, one would expect a slowdown in the economy. However, due to the government keeping investment and debt levels high, the growth rate has also remained high. He concluded that the high amount of debt, rather than the reported high amount of growth, should be the major concern of those watching China’s markets.
About the Author
Michael Pettis
Nonresident Senior Fellow, Carnegie China
Michael Pettis is a nonresident senior fellow at the Carnegie Endowment for International Peace. An expert on China’s economy, Pettis is professor of finance at Peking University’s Guanghua School of Management, where he specializes in Chinese financial markets.
- Who Paid for China’s Last Debt Cleanup, and Who Will Pay for the Next?
- Is China’s High-Quality Investment Output Economically Viable?Commentary
Michael Pettis
Recent Work
More Work from Carnegie China
- Who Paid for China’s Last Debt Cleanup, and Who Will Pay for the Next?Commentary
China’s banking crisis in the 2000s was resolved by transferring the costs to households through financial repression—a decision that recapitalized the banks while exacerbating the structural imbalances that continue to shape the Chinese economy today.
Michael Pettis
- Caught in the Middle: Chinese Biotech Firms’ Divergent Responses to U.S. SanctionsCommentary
Chinese biotech companies have been on the receiving end of U.S. economic coercion. Yet their responses have differed significantly because firm and state interests are not uniformly aligned. For Washington, treating all Chinese tech firms the same, irrespective of their actual interests, risks pushing them farther into Beijing’s corner.
Xue Gong
- Are Data Centers the Solution to China’s Renewables Excess Capacity?Commentary
China’s latest energy plan explicitly calls for integrating data centers into the electricity system, particularly connecting them to green energy. It appears Beijing wants to use compute as a source of domestic demand to absorb renewables excess capacity.
Damien Ma
- Trump and Xi Are Angling for Three Years of StabilityCommentary
But their "principal to principal" model will only be as effective as the political strength of each leader back home.
Damien Ma
- China Sells Stability Amid American VolatilityCommentary
U.S. unpredictability has allowed China to capitalize on its positioning as the “responsible great power”. Paradoxically, the more China wins the perception game, the more likely expectations will rise for Beijing to deliver not just words but to demonstrate with its deeds.
Chong Ja Ian
