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RMB internationalization will have long-term benefits, but for now China should focus on the intrinsic value of financial reforms rather than their role as prerequisites to internationalization
If China hopes to maintain growth of 7.5 percent, it must improve the efficiency of its urbanization process and allow the private sector to play a more prominent role
Urbanization accommodates but does not cause growth and the current push for urbanization will only make China richer if it increases productivity by more than it increases debt
The implications of China’s slowing economy depend on how successful and orderly the rebalancing process will be in the face of domestic opposition from elites who have benefited from three decades of unbalanced growth.
The Chinese growth model is not radically new. It is based primarily on the growth model developed by Japan in the twentieth century, and it has been implemented in various forms by many countries.
Experts are sounding warning signals about China’s slowing growth, but if China recalibrates its economy in the right way, everyone will benefit.
While most analysts believe that slower growth in gross domestic product will unleash social unrest in China, the growth rate that matters is household income.
Strange as it may seem, many years of miracle growth are always the “easy” part for a poor country. The tough part is usually the subsequent adjustment needed to accommodate the changes generated over the miracle years.
China’s unbalanced economy is the result of a successful structural transition that has created sustained GDP, consumption, and wage growth.
As the debate in Beijing intensifies over the quality and sustainability of China’s economic growth, China’s most thoughtful economists are increasingly skeptical about the need for high gross domestic product growth rates.