Publications tagged with : Chinese economy
Editor’s note: With the global financial crisis overlaying profound domestic changes, China’s global production system is under stress. The Chinese economic miracle was engineered by institutional and process innovation at all levels of the government services [more] supply chain, note Andrew Sheng, President of the Fung Global Institute, and its Director of Research, Xiao Geng. Now, China requires nothing less than another radical re-engineering to become a more [more]balanced, socially equitable, and sustainable economy.
Editor’s note: As China’s growth decelerates and the government considers how to respond, there is much talk about a new stimulus package. But Louis Kuijs, Project Director at the Fung Global Institute, argues that the Chinese economy is not in danger of a hard landing and, therefore, needs a healthy dose of structural reform more than another round of pump priming that would only reinforce its existing imbalances.
Editor’s note: Despite setting ambitious targets in its current five-year plan, China can achieve its objectives to promote inclusive growth, rebalance the economy and protect the environment, maintains Liu Mingkang, the Fung Global Institute’s first Distinguished Fellow. In a 31 May keynote address at the Institute’s inaugural Asia-Global Dialogue, he also recalled the urgent reforms he led to avert disaster for China’s banking sector.
Editor’s note: With its economy slowing, China should take a longer-term approach to its macroeconomic management and rationalise its financial markets for quality growth, says Fung Global Institute Director of Research and Senior Fellow, Xiao Geng. In moving to address deep-rooted imbalances in its economy, he adds, China should also abandon ad hoc administrative controls in favour of market-oriented instruments such as market-equilibrium interest rates and modern [more]regulatory arrangements that support sustainable, inclusive growth.
Editor note: While risks remain, a hard landing for China’s economy seems unlikely, according to Louis Kuijs, a Project Director at the Fung Global Institute. He maintains that addressing broad economic imbalances -- and not preventing a financial-economic crisis ---is the prime motivation for changing China's growth pattern. To do so, he says, requires comprehensive structural reforms, including some that will be difficult to pursue.
Editor’s note: Will China remain an export powerhouse? With reports accumulating of companies looking elsewhere to place their factories, the ranks of doubters have been growing. But Louis Kuijs, a Project Director at the Fung Global Institute, says they are wrong. Except in the cheapest and most labour-intensive industries, the Chinese export sector is doing just fine.
Editor’s note: Having stood up in 1949 after more than a century of “humiliation”, China stands to be more powerful than ever as the global economy’s erstwhile roost-rulers – the US, EU and Japan - falter, says Fung Global Institute Senior Fellow Jean-Pierre Lehmann, who is also Professor of International Political Economy at IMD.
Editor’s note: While inflation is keenly felt on a personal level by individual Chinese citizens, it also points to deeper structural problems in China’s economy. In this analysis, Fung Global Institute Director of Research Geng Xiao, who is also a Senior Fellow, argues that China must use positive real interest rates as a tool if it is to create a new growth model.