Worrying times?

As I wandered down the hallways and in and out of the session rooms at the World Economic Forum's China Business Summit, I realized that two main themes were emerging from the presentations and discussions.
First, US government officials and many Western economists are worried that the Chinese economy is overheating and that borrowing needs to be discouraged by raising interest rates. Second, concern is growing that a speculative bubble may be growing around the real estate market in mainland China just as it did in Hong Kong back in the 1990s.

Chinese officials, however, appear confident that the economy can be managed successfully through credit controls and other administrative measures. After all, they have managed to sustain economic growth at or above 7.5% per year since 1990 while the rest of the world has suffered two recessions.

China has enjoyed an unprecedented period of wealth creation. In the last 25 years assets held by Chinese banks have risen a hundredfold, with 400 million people rising above the global poverty line. It's too early to say whether China will manage a soft economic landing but its record in recent years has been exemplary.
Perhaps some in the West cannot yet accept that China has grown up and can look after itself. Or maybe they don't understand that Chinese capitalism is different and doesn't work by purely Western rules.

I'll let you know more about what's coming out of this Summit before it wraps up on Monday evening.

Comments

[Samantha]

Hi Richard! Looks like you're enjoying the buzz of the conference.
I liked your comment about whether the West cannot accept that China's grown up and is successfully transforming itself on its own terms.... Keep up the blogging!