Source: China View
Carnegie’s Yukon Huang appeared on China View to discuss his perspective on China’s unbalanced growth process. Huang argued that all economies that have successfully reached high income status, including the United States, Korea, and Japan, did so through unbalanced growth processes of high investment and low consumption. These success stories only became balanced after they reached high income states, which China will not reach until around 2020. He also pointed out that the fundamental goal of any economy is not simply GDP growth but improvement in living standards. This is partially accomplished through consumption growth and, despite consumption’s unusually small share of GDP, China has produced the most rapid growth of consumption of any country over the past three decades. Finally, Huang added that the key for maintaining sustainable growth going forward is improving productivity.