Content from the Brookings-Tsinghua Public Policy Center is now archived. Since October 1, 2020, Brookings has maintained a limited partnership with Tsinghua University School of Public Policy and Management that is intended to facilitate jointly organized dialogues, meetings, and/or events.
Geng Xiao asserts that fears of the Chinese economy overheating are misplaced. On a global scale, the economy as a whole is well-integrated and its performance is no longer entirely dependent on the US economy.
Xiao does caution, however, that China must address its surpluses of capital and labor. To do so, China must maintain a macro-economic policy that is open to investment, and it must develop its financial sector to maintain stability and to increase efficiency. Only then can China sustain a high rate of growth.
Commentary
Is the Chinese Economy Overheated?
May 8, 2007