China a Top Risk Facing the Global Economy in 2019

Kevin Rudd on Bloomberg TV

On January 7, Asia Society Policy Institute President Kevin Rudd spoke on Bloomberg TV about the risks facing the global economy in 2019. According to Rudd, China is “very much at the center of the risk matrix,” given concerns about China's impact on geopolitical and economic stability.  

Rudd highlights tangible concerns in two areas: economic growth and military brinkmanship. He explains that Xi Jinping may struggle to keep economic growth above the important 6 percent mark, even with the ability to pump fiscal stimulus into domestic markets. Moreover, any pressure from Chinese private entrepreneurs and advisors to open up markets to boost long-term grown could be at odds with Xi’s growing desire to consolidate power in the Chinese Communist Party.

Tense relations between Beijing and Washington are another challenge. China’s aggressive actions in the South China Sea, and U.S. freedom of navigation operations greatly increase the opportunity for accidental collisions and other military confrontations. Such an incident could be especially dangerous given the political sentiments in both countries right now. These twin challenges place China at the top of Rudd’s 2019 risk list.

Watch the interview on Bloomberg.