Tuesday, April 2, 2019

Current Trade War Could Result In The 'Worst Recession In Recent Chinese History'

Minxin Pei, a professor of government at Claremont McKenna College and a non-resident senior fellow at the German Marshall Fund of the United States, wrote ‘China’s Crony Capitalism: The Dynamics of Regime Decay’. Photo: Winson Wong

South China Morning Post: US-China trade war inactivity could lead to the ‘worst recession in recent Chinese history’, says scholar

* Political economy professor Minxin Pei says Beijing lacks the will to make radical political changes to deal with the trade war with the United States
* Also says China’s strong control of the economy will eventually backfire, with economy slowing to its lowest growth point for almost 30 years

China’s inability to “take the opportunity to do the right thing” during the trade war with the United States could cost the country dearly in form of a recession that “will become the worst in recent Chinese history”, according to a leading political economy scholar.

Minxin Pei, a professor of government at Claremont McKenna College and a non-resident senior fellow at the German Marshall Fund of the United States, believes China’s strong control of the economy will eventually backfire.

“So far, it shows that China is not taking the opportunity to do the right thing,” said Pei. “China is willing to make some concessions by buying more goods, perhaps also improve intellectual property protection, but that does not improve China’s economy structurally.

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WNU Editor: Minxin Pei's analysis is spot on.

3 comments:

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Anonymous said...

The professor is a dead man walking if he ever returns to China.

Anonymous said...

He's just saying what a growing number of people know. China is in a terrible spot. Not only is the chinese market contracting, not only is brain and capital leaving because of their draconic policies, but the housing bubble is coming too with trillions that will be wiped out. The Chinese plan was to evade the bubble by growing out of it, but they're not growing nearly fast enough and now have to pump billions into the market to artificially inflate the housing prices. They cannot keep doing this. When it all ends is anyone's guess. But I'm starting to think China needs a war or at least a skirmish for distraction at home, because millions who expected to live like Americans will now live like, well, Chinese. And that's not acceptable to a lot of young guys over there who were indoctrinated for 20+ years that the Chinese century is coming. They absolutely believed that and longed for it. It is part of their identity. If you tell a huge population for 20+years that the west and Japan is bad and kept you from your deserved world throne and then you're told "but don't worry your time has come" and then it again has not, those people will be very upset