France 24 reports that China’s leaders gather Monday to hash out a new Five Year Plan to battle slowing growth, and analysts say they must choose between chasing a traditional GDP target and embracing reforms such as to the “one child policy” to help the country develop its full potential.
The article argues that after a decades-long boom, experts say China needs to embrace further liberalisation to avoid the “middle income trap” when developing countries fail to transform their growth model to maintain their competitive edge.
Personally, I’m optimistic for China’s transition and soft-landing.
It’s interesting to contrast China’s growth v reform debate, with the increasing evidence of greater inequality in the US. At least China is focused on strategic planning, whereas in the US priorities seem to be determined by financial markets.