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Why Conventional Economic Wisdom Is Wrong

China is unique in terms of its economic performance but is not exceptional. People need a different set of assumptions to understand China’s economy even though the economic principles for analysis are the same.

published by
CGTN
 on October 17, 2017

Source: CGTN

Speaking on CGTN, Carnegie’s Yukon Huang argued that while China is unique in terms of its economic performance, it is not exceptional. He explained that a different set of assumptions is needed for understanding China’s economy, even though the economic principles for analysis are the same. He offered as an example the importance of recognizing the unique role of local governments in creating a competitive environment in China. On the topic of globalization, Huang argued that there has been an important change in the perception that emerging economies are putting pressures on employment and wage in advanced economies. While the governance structure of globalization has undergone changes and emerging economies have had more say, a consensus has not been reached on what everyone should work toward, Huang said. Huang also argued that the issues that China faces now—such as environmental issues and innovation—are quite different from what it faced ten years ago.

This interview was originally broadcast by CGTN.

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.