Desmond Lachman is rightly not worried that China’s economy poses a threat to that of the United States. (Indeed, I regret the loss of wealth – to the Chinese people as well as to Americans and all who trade with the Chinese – that will result from the failure of China’s economy to continue to grow impressively.) Here’s a slice from Lachman’s essay:
Another factor that does not bode well for China’s future economic performance is President Xi’s apparent intention to destroy the foundation on which China’s economic miracle rested. He is reversing the economic reforms introduced by Deng Xiaoping in 1979, aimed at giving the private sector increased room to breathe dynamism into the Chinese economy. Fearful of the challenge that a thriving Chinese private sector might pose to the Communist Party’s political hold on the country, President Xi is now reestablishing party discipline and increasing the role of China’s state enterprises.