While the Chinese authorities' efforts to root out corruption within the Communist Party are a welcome development, the Party itself is part of the problem. The true test of change will be whether the Party is prepared to subordinate itself to new, inclusive institutional arrangements that are conducive to comprehensive economic reform.
LONDON – China’s annual growth rate has recently increased from below 6% at the start of 2014 to around 7.5% in the second quarter, helped by a series of stealth stimulus measures. But the growth spurt is unlikely to last – and may reverse – as China seeks to control excessive credit expansion. And achieving longer-term sustainable growth will also depend on political factors – particularly the impact of President Xi Jinping’s anti-corruption campaign, aimed at “purifying” the Chinese Communist Party (CCP).
LONDON – China’s annual growth rate has recently increased from below 6% at the start of 2014 to around 7.5% in the second quarter, helped by a series of stealth stimulus measures. But the growth spurt is unlikely to last – and may reverse – as China seeks to control excessive credit expansion. And achieving longer-term sustainable growth will also depend on political factors – particularly the impact of President Xi Jinping’s anti-corruption campaign, aimed at “purifying” the Chinese Communist Party (CCP).