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Why China bears are wrong: An interview with Andy Rothman

Sinica Podcast

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What's Your Take on Capital Flight in China?

In January and February, the media was just full of people talking about how all the hard currency, the foreign exchange reserves in China was flooding out. What's going on here? Well, I think the problem is twofold. One is that the story that we've been talking about on this show is kind of boring. They're muddling through. Everything's going to be fine. It's just going to grow a little bit more slowly each year. But what's going to happen is over time, they're going to have to cut back the growth rate on that spending in order to deal with the debt problem.

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