2/7
On the one hand Han Wenxiu acknowledged "that the old development model involving huge capital and material injections, as well as environmental damage, can no longer be sustained, and called for innovation to be the primary source of future growth."
On the one hand Han Wenxiu acknowledged "that the old development model involving huge capital and material injections, as well as environmental damage, can no longer be sustained, and called for innovation to be the primary source of future growth."
3/7
On the other hand he argues that "China needs to regard development as the No 1 priority, and ensure a 'reasonable growth' of the national economy in a persistent way."
On the other hand he argues that "China needs to regard development as the No 1 priority, and ensure a 'reasonable growth' of the national economy in a persistent way."
4/7
According to Frank Tang, the author of the article, "his explanation indicated that regardless of domestic and external headwinds, the worldβs second-largest economy will continue to highlight GDP growth".
According to Frank Tang, the author of the article, "his explanation indicated that regardless of domestic and external headwinds, the worldβs second-largest economy will continue to highlight GDP growth".
5/7
I think Han is too smart not to understand the contradiction. He knows China must sharply reduce its dependance on "fictional" growth, i.e. the unsustainable increase in economic activity driven in recent years by non-productive investment and surging debt.
I think Han is too smart not to understand the contradiction. He knows China must sharply reduce its dependance on "fictional" growth, i.e. the unsustainable increase in economic activity driven in recent years by non-productive investment and surging debt.
6/7
But he realizes that this will be almost impossible without a significant β and politically unacceptable β slowdown in economic activity as measured by the growth in China's GDP.
But he realizes that this will be almost impossible without a significant β and politically unacceptable β slowdown in economic activity as measured by the growth in China's GDP.
7/7
My guess the way to "resolve" this contradiction is to slow the pace of adjustment to whatever is politically necessary. Unfortunately this means a few more years of a sharply worsening debt debt burden and, consequently, a worse economic adjustment over the longer term.
My guess the way to "resolve" this contradiction is to slow the pace of adjustment to whatever is politically necessary. Unfortunately this means a few more years of a sharply worsening debt debt burden and, consequently, a worse economic adjustment over the longer term.
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