China Backslides on Economic Reform | Asia Society Skip to main content
  • Back to asiasociety.org
  • Topics
    • Prosperity
    • Security
    • Sustainability
  • Countries & Regions
    • East Asia
    • Southeast Asia
    • South Asia
    • Central Asia
    • West Asia
  • Publications
  • Watch & Listen
    • Video
    • Podcasts
  • Events
    • AsiaX
    • Past Events
  • About
    • Mission
    • How We Work
    • Institutional Independence
    • Staff
    • Fellows and Advisors
    • Network of Experts
    • Supporters
    • News
    • Contact
    • Careers
    • Schwartz Book Award
    • Join Our Email List
  • Support Us
leo icon Asia Society Policy Institute
Search
asiasociety.org
Asia Society Policy Institute
Search
  • Topics
    • Prosperity
    • Security
    • Sustainability
  • Countries & Regions
    • East Asia
    • Southeast Asia
    • South Asia
    • Central Asia
    • West Asia
  • Publications
  • Watch & Listen
    • Video
    • Podcasts
  • Events
    • AsiaX
    • Past Events
  • About
    • Mission
    • How We Work
    • Institutional Independence
    • Staff
    • Fellows and Advisors
    • Network of Experts
    • Supporters
    • News
    • Contact
    • Careers
    • Schwartz Book Award
    • Join Our Email List
  • Support Us

China Backslides on Economic Reform

Kevin Rudd and Daniel Rosen in the Wall Street Journal

Xi jinping party congress

Chinese President Xi Jinping (C) arrives for the opening session of the National People's Congress (NPC) at the Great Hall of the People in Beijing on May 22, 2020. - Chinese Premier Li Keqiang will address his nation on the coronavirus, economy, and other high-stakes issues on May 22 to kick off an annual legislative session in the shadow of the global pandemic. (Leo RAMIREZ / AFP)

September 22nd, 2020

This is an excerpt from an op-ed by Kevin Rudd and Daniel Rosen that was originally published in the Wall Street Journal. 

China is the only major world economy reporting any economic growth today. It went first into Covid-19 and was first out, grinding out 3.2% growth in the most recent quarter while the U.S. shrank 9.5% and other advanced economies endured double-digit declines. High-tech monitoring, comprehensive testing and aggressive top-down containment measures enabled China to get the virus under control while others struggled. The Middle Kingdom may even deliver a modest year-over-year economic expansion in 2020.

This rebound is real, but behind the short-term numbers the economic restart is dubious. China’s growth spurt isn’t the beginning of a robust recovery but an uneven bounce fueled by infrastructure construction. Second-quarter data showed the same imbalance other nations are wrestling with: Investment contributed 5 percentage points to growth, while consumption fell, subtracting 2.3 points.

Since 2017, the China Dashboard, a joint project of Rhodium Group and the Asia Society Policy Institute, has tracked economic policy in China closely for signs of progress. Despite repeated commitments from Chinese authorities to open up and address the country’s overreliance on debt, the China Dashboard has observed delayed attempts and even backtracking on reforms. The Covid-19 outbreak offered an opportunity for Beijing to shift course and deliver on market reforms. Signals from leaders this spring hinted at fixing defunct market mechanisms. But notably, the long list of reforms promised in May was almost the same as previous lists—such as separating capital management from business management at state firms and opening up to foreign investment while increasing the “quality” of outbound investment—which were adopted by the Third Plenum in 2013. In other words, promised recent reforms didn’t happen, and nothing in the new pronouncements explains why or how this time will be different.

Read the full article. 

Related Initiative

  • China Dashboard Page Image

    The China Dashboard

    Tracking China’s Economic Reform Program
We Know Asia,
Get to Know Us

Visit Us

  • Hong Kong
  • New York
  • Texas

Global Network

  • Australia
  • India
  • Japan
  • Korea
  • Northern California
  • Philippines
  • Southern California
  • Switzerland
  • Washington, DC

Resources

  • Arts
  • Asia Blog
  • ChinaFile
  • Current Affairs
  • Education
  • For Kids
  • Policy
  • Video

Shop

  • AsiaStore

Initiatives

  • Arts & Museum Summit
  • Asia 21 Young Leaders
  • Asia Arts Game Changer Awards
  • Asia Game Changer Awards
  • Asia Society Museum: The Asia Arts & Museum Network
  • Asia Society Policy Institute
  • Center for Global Education
  • Center on U.S.-China Relations
  • China Learning Initiatives
  • Coal + Ice
  • Creative Voices of Muslim Asia
  • Global Cities Education Network
  • Global Learning Beyond School
  • Global Talent Initiatives
  • Int'l Studies Schools Network
  • U.S.-Asia Entertainment Summit
  • U.S.-China Dialogue
  • U.S.-China Museum Summit

About Asia Society

  • Mission & History
  • Our People
  • Become a Member
  • Career Opportunities
  • Corporate Involvement

Connect

  • Email Signup
  • For the Media

©2021 Asia Society | Privacy Statement | Accessibility | About AsiaSociety.org | Terms & Conditions | Sitemap | Contact

Asia Society takes no institutional position on policy issues and has no affiliation with any government.
The views expressed by Asia Society staff, fellows, experts, report authors, program speakers, board members, and other affiliates are solely their own. Learn more.

 

 

  • Visit Us
  • Hong Kong
  • New York
  • Texas
  • Global Network
  • Australia
  • India
  • Japan
  • Korea
  • Northern California
  • Philippines
  • Southern California
  • Switzerland
  • Washington, DC