The Need for Slower Chinese Growth

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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.

By Michael Pettis

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.

This interview was originally broadcast by CNBC.

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.

Recent Work

Commentary
Who Paid for China’s Last Debt Cleanup, and Who Will Pay for the Next?
- Michael Pettis
Commentary
Is China’s High-Quality Investment Output Economically Viable?
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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.

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