Though China's government has expressed a willingness to accept slower growth for the sake of a more stable, sustainable economy, whether the decline will be temporary is not yet apparent. Ensuring that it is will require patience and discipline in domestic and foreign policy.
MILAN – Despite China’s widely discussed economic slowdown, annual GDP growth remains above 7%, implying little cause for alarm – at least for now. The question is whether the government’s efforts to implement structural reforms and transform the economy’s growth model are working – that is, whether internal imbalances continue to threaten long-term economic performance. Given that China remains the global economy’s most important growth engine, the answer matters to everyone.
MILAN – Despite China’s widely discussed economic slowdown, annual GDP growth remains above 7%, implying little cause for alarm – at least for now. The question is whether the government’s efforts to implement structural reforms and transform the economy’s growth model are working – that is, whether internal imbalances continue to threaten long-term economic performance. Given that China remains the global economy’s most important growth engine, the answer matters to everyone.