China’s Modern Paradox: Economics

For all its wealth and size, China is inexperienced in running a world class economy, esp. one trying to set up as many domestic policies as China’s social engineering demands. It has bright spots, but structural problems from pollution to banking to rural and urban policy hinder its progress.

Part of the problem is China plans “in-the-moment.” In its desire for smooth transitions, it creates more economic shocks by ignoring the conditions it creates to solve the present crisis. Consequently, both present and future are described by half measures that are also over regulation; China’s interventions in its capital markets are reminders of this slippery failure, of the folly of ignoring economics dangerous paradoxes. China’s ambitious rebalancing, moving away from credit-fueled, investment-led export-powered growth of 10 % GDP gains (1980 to 2012) China confronts at least 3 paradoxes: its traditional culture is a stumbling block; its transition from centrally planned into a market economy betray the perils of its self-serving bureaucracy; and its tension in establishing secure rights of private property.

China is also faced with continuing the global commitments its economy leveraged as foreign policy, including a vast array of massive financial promises in South America and Africa as a principal credit partner and supplier.

To regain its footing and direction, China will have to accept and view its failures and shocks as needed steps in its path to greater success.

China’s Obsolete Economic Strategy – The New York Times


One thought on “China’s Modern Paradox: Economics

  1. China is learning from doing. They are getting out of the box they were in and it is good to see that happen. Time takes time as we all learn in living our own experiences of life and realize the patterns we need to change. Life is a great teacher!!!


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