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The Chinese Economy: Transitions and Growth Barry Naughton
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At a minimum it'll allow more of its citizens to buy widgets that help them get around the Great Firewall. It's Mr Li who will be responsible for combating the country's slowing economic growth and, with it, potentially the fate of the world's economy. The above chart from the Wall Street Journal highlights the major change that has already taken place in the US economy as it transitions to the New Normal. Economic growth hopefully will bring more freedom to China's people. China recorded its last double-digit growth in 2010. Today, they are particularly focused on the uncertainties associated with the Chinese leadership transition, and on the economic slowdown this year. First, a structural slowdown of growth looks clearly to be in the cards. Recent signs show that the Chinese economy, which has maintained double-digit growth for three decades, is slowing down. Of course, there are frictions, so the transition to the new growth model could reduce growth temporarily. Lardy, an authority on China and its economy, about his book “Sustaining China's Economic Growth After the Global Financial Crisis.” Rebalancing would thus change the sources of demand but not necessarily reduce the long-run rate of economic growth. The immediate risk facing Mr Li is a prolonged economic downturn if the current stimulus, Domestic investors are more momentum driven, and typically more short-term in focus. Philip highlights three mutually reinforcing paths of transformation ahead in the Chinese economy.