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.
The Chinese leadership has promised for years that reform was around the bend and then you see things like President Xi’s speech where he emphasized the central role of the party... Members of the business community see the Trump administration as an opportunity for the U.S. to rattle the cage in Beijing.