I take a strong exception with the biased views highlighted in this article. Where is the contextual basis?
This article is typical of the China articles written for an American audience to make Americans feel that perhaps Obama has not been such a disaster after all and China will not really eclipse America’s economy.
Firstly, the risks in China’s steel and traditional industries are real. BUT the risks can be mitigated. Look how robustly China responded after the 2008 financial crisis which started in the US – China weathered the storm with a massive Keynesian investment splurge – admittedly it caused subsequent problems but it was robust decision-making.
The article does not compare to the US government bailing out the US motor industry after the 2008 financial crash?
Yes, the state corporations in China need urgent reform but so does the bloated public sector in the US, the UK, France, Italy and Japan – and, of course, the EU bureaucracy is probably the world’s most inefficient bureaucracy.
Similarly, the ‘old’ and ‘new’ could be applied to Britain’s collapsing public health service, the NHS. In this blog, John Gelmini and I have repeatedly argued in favor of scrapping the NHS and replacing it with a new best-of-breed public health service, leveraging best practice, in countries like Germany, Italy, France and Singapore.
The difference between China and the UK is that the government and political classes in China are ready to act decisively.
It reminds me of the old saying:
People in glass houses shouldn’t through stones.