China’s rebalancing will not be automatic
Labourers work at the construction site of Fengyu Bridge over Qingshui River on 18 February 2012 in Kaili, Guizhou Province of China. (Photo: AAP)

Author: Nicholas Lardy, PIIE

The imminent rebalancing of China’s economy has been forecast repeatedly over the past several years.

With the shrinking of China’s external surplus during 2011, proponents of this argument have all but declared victory. Read more…

Sustaining economic growth in China
A migrant worker walks past an advertisement for a residential apartment project in Shaoyang city, Hunan province, 17 December 2011. China said on 31 January 2012 that it will improve tightening measures in the property market to fend off a speculative bubble and help home prices return to reasonable levels. (Photo: AAP)

Author: Nicholas Lardy, PIIE

China’s 2009-10 stimulus program was quite successful: growth ticked down only slightly in 2009 while the rest of the world suffered its sharpest decline in 60 years.

But the stimulus program was not intended to address the longer-term structural problems that in 2007 led China’s premier, Wen Jiabao, to characterise the country’s growth as ‘unsteady, imbalanced, uncoordinated and unsustainable’. Read more…