The great row on China
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The GDP growth figures published today are likely to reinforce both sides in what could be called The Great China Debate.
Those who believe China will continue to grow strongly will argue China’s rapid growth in 2009 confirms their view. They will point out that China managed to grow by 8.7% in 2009 despite the downturn in the global economy.
Others will take the same figures as confirmation that China is in the middle of a massive economic bubble. They will also highlight the sharp rise in inflation in recent months. (article continues below)
Sadly many of those participating in the debate know little about China. They simply assume that China can be understood by applying a relatively simple economic model or even using a few anecdotes. Relatively few are prepared to grapple with the specific features of the Chinese economy.
There is an urgent need to improve the west’s understanding of China. The Great China Debate has important implications for the global economy.
