Paying The Piper: Economic Reform In China

Paying The Piper: Economic Reform In China by Causeway Capital Management

Quoted by China Daily newspaper on June 10, 2015, Goldman Sachs Chairman and CEO Lloyd Blankfein commented that “China has achieved a very high growth rate at some cost…so growth has to be absorbed, mistakes have to be corrected and bad investments have to be written off in order to have another stage of rapid growth.” Easier said than done. What are the implications for a slowing Chinese economy—one that cannot absorb the world’s non-food commodities at the pace of the past two decades? China needs to continue its implementation of structural reform (opening industries to foreign competition and lowering trade barriers, for example). This year, the...