January 1, 2016
For the current leaders “muddling through” is good enough
As China gets ready to welcome the year of the monkey and to adopt a new five year plan, Scott Kennedy of the Center for International and Strategic Studies in Washington (CSIS) examines the challenges for the Chinese leadership. Sluggish growth and clumsy stock market interventions have cast a shadow of doubt on the leadership’s ability to manage the economy.
How can China move from investment-led growth to more consumption and services? “China still has the chance to grow relatively rapidly for a decade or two if they adopt the right policies”, says Kennedy. But he also has a stark warning for the leadership under Xi Jinping: “If China doesn’t become more productive and innovative soon and doesn’t improve its regulatory environment, a lot of foreign investment is going to go elsewhere.” Listen to our “MERICS Experts” podcast with Scott Kennedy.