The new dual thrust of Chinese policy – redistribution plus re-regulation – will subdue the entrepreneurial activity that has been so important in powering China’s dynamic private sector. Without animal spirits, the case for indigenous innovation is in tatters.
NEW HAVEN – All eyes are fixed on the dark side of China. We have been here before. Starting with the Asian financial crisis of the late 1990s and continuing through the dot-com recession of the early 2000s and the global financial crisis of 2008-09, China was invariably portrayed as the next to fall. Yet time and again, the Chinese economy defied gloomy predictions with a resilience that took most observers by surprise.
NEW HAVEN – All eyes are fixed on the dark side of China. We have been here before. Starting with the Asian financial crisis of the late 1990s and continuing through the dot-com recession of the early 2000s and the global financial crisis of 2008-09, China was invariably portrayed as the next to fall. Yet time and again, the Chinese economy defied gloomy predictions with a resilience that took most observers by surprise.