OnPoint Subscriber Exclusive
Longer Reads provide in-depth analysis of the ideas and forces shaping politics, economics, international affairs, and more.
The Contradictions of Chinese Capitalism
Decelerating growth and financial-market turmoil have raised fundamental questions about the Chinese economy’s prospects. One problem many commentators rightly identify is policymakers’ inexperience with markets; more important, however, may be that the authorities remain in thrall to an unsustainable hybrid market model.
https://prosyn.org/a6n5p9k
LONDON – The Year of the Monkey is well into its third month – and the rest of the world must hope that China’s authorities will soon start to live up to the monkey’s supposed cleverness. So far, the evidence is unconvincing. The Shanghai Composite Index dropped by 18% in the first two weeks of 2016, and has endured lesser falls since then; the renminbi has been on a downward trend since late 2014; and economic growth continues to slide. In short, it looks to many people as if China has lost the plot.