Five myths about the Chinese economy

A widely held Western view of China is that its stunning economic success contains the seeds of imminent collapse. This is a kind of anchoring bias, which colors academic and think-tank views of the country, as well as stories in the media. My experience working and living in China for the past three decades suggests that this one-dimensional view is far from reality. In this analysis, McKinsey & Company challenges five common assumptions around China: 1) China has been faking a sustainable economy; 2) China’s economy lacks the capacity to innovate; 3) China’s environmental degradation is at the point of no return; 4) Unproductive investment and rising debt fuels China’s rapid growth; 5) Social inequities and disenfranchised people threaten stability. In short, China’s growth is slower, but weighing the evidence I have seen, the sky isn’t falling. Adjustment and reform are the hallmarks of a stable and responsive economy—particularly in volatile times. Read the full story: (VIEW LINK)