In recent years, China’s economy has grown at a slower pace, prompting many experts to speculate on its future prospects. In this podcast, Paul Haenle and Carnegie’s Yukon Huang examined and debunked certain misperceptions that inform current conventional wisdom about the debt that China has accumulated and the country’s unbalanced growth.
Huang posited that China’s debt is the result of deliberate government stimulus programs and not fiscal mismanagement. He asserted that rising debt levels suggest that China’s fiscal system will need to evolve to fit the country’s needs as an emerging market. Huang also maintained that unbalanced growth is a necessary step for China to grow from a middle-income country to a high-income one.
Yukon Huang is a senior associate in the Carnegie Asia Program. His research focuses on China’s economic development and its impact on Asia and the global economy.
Paul Haenle is the director of the Carnegie–Tsinghua Center for Global Policy. Prior to joining Carnegie, he served from June 2007 to June 2009 as the director for China, Taiwan, and Mongolian Affairs on the National Security Council staffs of former president George W. Bush and President Barack Obama.