What Is Beijing Going to do About Slowing Growth?

{
  "authors": [
    "Evan A. Feigenbaum"
  ],
  "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"
  ]
}

In The Media

What Is Beijing Going to do About Slowing Growth?

Even though Beijing’s leaders realize the need for reform, resistance from state-owned enterprises presents a political barrier to implementing changes.

By Evan A. Feigenbaum

Published on Oct 20, 2014

Source: CNBC

Speaking on CNBC, Carnegie’s Evan Feigenbaum discussed the economic options available to China. He said that if the government continues to stimulate the economy, it could lead to further economic distortions. Instead, he said, real potential lies in looking to other sources of growth that could lead to long-term reform. Such sources include a “greater role for the private sector in the economy; demonopolization and opening of more sectors to competition; and greater innovation.” Feigenbaum added that, while the Chinese government realizes this, there has been greater resistance from the state-owned enterprises to these reforms than anticipated, so the lag in implementing these policies has been “political” and not “intellectual.” He concluded that Beijing was ultimately more concerned with the depth and quality of reform rather than the speed of reform, and so Beijing is working on changing the environment in which such state-owned enterprises operate rather than assaulting them directly.

This interview was originally broadcast by CNBC.

About the Author

Evan A. Feigenbaum

Vice President for Studies

Evan A. Feigenbaum is vice president for studies at the Carnegie Endowment for International Peace, where he oversees work at its offices in Washington, New Delhi, and Singapore on a dynamic region encompassing both East Asia and South Asia. He served twice as Deputy Assistant Secretary of State and advised two Secretaries of State and a former Treasury Secretary on Asia.

Recent Work

Commentary
In Its Iran War Debate, Washington Has Lost the Plot in Asia
- Evan A. Feigenbaum
Commentary
Beijing Doesn’t Think Like Washington—and the Iran Conflict Shows Why
- Evan A. Feigenbaum

Economy East Asia China

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Endowment for International Peace

Paper
Threading the Needle: India’s Path Forward with China
After the chill in ties between 2020 and 2024 that brought India–China relations to their lowest point in several decades, the two countries have engaged each other afresh. This paper argues that there are predominantly four imperatives guiding India’s approach to China, and they exist in an order of priority.
Saheb Singh Chadha
Article
In the Middle East and North Africa, America and China Converge More Than They Diverge
Middle powers in the region will keep hedging between Washington and Beijing. It’s in the great powers’ interests to play along.
Amr Hamzawy, Kathryn Selfe
Paper
The Future of American Economic Power
The future of American economic power will be determined by the interplay between Trump’s ambitions and the global backlash against them, as well as economic developments outside the direct control of the government, such as advances in AI.
Peter Harrell
Commentary
President Lee Jae Myung: A Year in Power
President Lee marked his first year in office after one of the most tumultuous periods in South Korean politics. Though Lee has enjoyed a high approval rating, a large majority in the National Assembly, and foreign policy victories, Lee and his party’s political fortunes depend on generating economic growth, learning the right lessons from the recent local elections, and managing contentious factional strife within his political base.
Chung Min Lee
Paper
From Trade Dependence to Geopolitical Leverage: The EU in an Era of Weaponized Interdependence
As geopolitical rivalry weaponizes global supply chains, the EU’s true vulnerability lies in emerging-risk imports. For these goods, suppliers are growing more concentrated, substitution more difficult, and political risk is looming.
Sinan Ülgen

More Work from Carnegie Endowment for International Peace

Paper

Threading the Needle: India’s Path Forward with China

After the chill in ties between 2020 and 2024 that brought India–China relations to their lowest point in several decades, the two countries have engaged each other afresh. This paper argues that there are predominantly four imperatives guiding India’s approach to China, and they exist in an order of priority.

Saheb Singh Chadha

Photo of commercial ship anchored near the Strait of Hormuz.

Article

In the Middle East and North Africa, America and China Converge More Than They Diverge

Middle powers in the region will keep hedging between Washington and Beijing. It’s in the great powers’ interests to play along.

Amr Hamzawy, Kathryn Selfe

Container ship arriving in Savannah, Georgia

Paper

The Future of American Economic Power

The future of American economic power will be determined by the interplay between Trump’s ambitions and the global backlash against them, as well as economic developments outside the direct control of the government, such as advances in AI.

Peter Harrell

Commentary

President Lee Jae Myung: A Year in Power

President Lee marked his first year in office after one of the most tumultuous periods in South Korean politics. Though Lee has enjoyed a high approval rating, a large majority in the National Assembly, and foreign policy victories, Lee and his party’s political fortunes depend on generating economic growth, learning the right lessons from the recent local elections, and managing contentious factional strife within his political base.

Chung Min Lee

Europe trade economy container supply chains

Paper

From Trade Dependence to Geopolitical Leverage: The EU in an Era of Weaponized Interdependence

As geopolitical rivalry weaponizes global supply chains, the EU’s true vulnerability lies in emerging-risk imports. For these goods, suppliers are growing more concentrated, substitution more difficult, and political risk is looming.

Sinan Ülgen