China’s economy increasingly driven by private sector innovation and conumption

The Economist (10 September, 2015) Special Report "Business in China" paints a  positive picture of China's economic dynamism, driven by private sector innovation and consumption.

After the world has been shaken if not stirred by China's recent stock market roller-coaster convulsions and apparently hapless government interventions, the following compendium of articles from the Special Report may offer a more balanced perspective –

Leader – The China that works

Back to business

How red is your capitalism

Paper Tiger Roaring Dragon

Entrepreneurship and Technology

Innovation Fast and Furious

Consumers The Wild Wild East

Still Made in China

Foreign investment – The new Silk Road

The good, the bad and the ugly

In any case, a crash in China's immature stock market is not an indication of China's growth collapse.What is far more important is the ongoing momentum towards reform of bloated state-owned enterprises and the flexibility of the labor market (e.g. the implementation of the hukou (household registration) reform. An article on the China Policy Institute blog dated 7 September by the Chief Economist of the Asian Development Bank explains why.

(P.S. Read Feeding the Dragon How will Beijing stimulate its slowing economy?, a critical analysis dated September 2015 by Wikistrat, a cloud-sourced global strategic consultancy.)

 

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