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The Chinese Economy: Transitions and Growth Barry Naughton
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Economic growth, it also requires a change in traditional modes of economic policymaking. However, a more significant underlying cause is the fact that China's economic transition may have already started. 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 diminishing advantage of low-cost factors and the declining FDI in China indicates that both the country's current export model and its mode of economic growth are at a turning point. Despite these Too gradual a transition, however, exposes the Chinese economy to the risk of a sharp correction for an undesirably long period. Then Sunday's New York Times featured an article on China's Economic Empire by Heriberto Araujo and Juan Pablo Cardenal, authors of China's Silent Army: The Pioneers, Traders, Fixers, and Workers Who Are Remaking The reserve currency makes America vulnerable to the off-shoring of its tradable industries as a result of currency manipulation, and that such manipulation by China and others is causing the loss of 2-3 percent of U.S. China's consumer-led growth means that China's economy is experiencing the transition from investment-led style. Recent years, it is a hot topic that if China's economy can keep growing rapidly. A few points call for special attention. Chinese economic policymakers will have to reduce explicit government controls and inter- vention and become more comfortable with allowing market mechanisms to guide ever larger segments of the economy. Of course, there are frictions, so the transition to the new growth model could reduce growth temporarily.