China’s leadership has announced major policy reversals that have left global investors and others bullish about its economic future. But correcting policy errors is no substitute for the reforms needed to deliver robust growth, including a return to political pragmatism and honest feedback.
America’s Gilded Age provides a historical lens for assessing Xi’s actions and suggests China’s current problems do not spell doom. Xi is trying to start China’s Progressive Era by command and control, though no government has yet overcome the side effects of capitalism by decree.
As Beijing aims for quality growth, it makes sense to dilute or even ditch GDP targets, but this is difficult in practice. Central planners also need to prune the burgeoning list of goals for local governments and grapple with the difficulty of imposing quantitative targets while emphasising quality.
The US cannot withdraw from global leadership and refuse to allow anyone else to take its place. If it wants to reclaim and retain its position, it must tackle inequality and the costs of globalisation – or risk a second Trump.
The success of Beijing’s pandemic response and and the failure of Washington’s seem to suggest authoritarian rule is superior to liberal democracy. But such a verdict is based on selective facts, and does not fully reflect the complexities of any political system.
A major driver of a backlash against China’s belt and road plan is the lack of quality control and brand management. One way to raise the quality of the programme is to test out small-scale, locally responsive projects such as sanitation.
