Odd Lots

This Is Why The China Bubble Never Seems To Pop

Jun 29, 2020

Tom Orlik, Chief Economist at Bloomberg and author of "China: The Bubble That Never Pops," explores why the Chinese economy, often labeled a bubble, continues to thrive despite alarming debt levels and state-directed investment. He discusses the unique resilience observed post-COVID and the challenges posed by weak consumer demand. The conversation delves into China's monetary policies, the government's role in revitalizing ghost cities, and the complexities of navigating both trade tensions and domestic innovation, raising questions about sustainability and the future of Chinese economic growth.

38:05

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Episode guests

Tom Orlik

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Episode notes

Intro

2min

China's Economic Recovery and Challenges

13min

China's Economic Maneuvering: Ghost Towns and Monetary Policy

5min

China's Economic Paradox

5min

Navigating China's Economic Ambitions and Stimulus Strategies

5min

Navigating Trade Tensions and Domestic Resilience in China

5min

The Paradox of Dominance: China's Table Tennis System

3min

Exploring China's Quasi-MMT Economic Model and Its Implications

4min

For years and years, the Chinese economy has been characterized as a bubble, with too much debt, and a history of badly thought out, state-directed investment. Yet, for all of the dire warnings, the economy has continued to grow, and there hasn’t been a reckoning. So why is this? Is it only a matter of time before things all fall apart? Such questions are even more urgent in the wake of the COVID crisis, and questions the stability of the Chinese growth model during a time of weakened demand for Chinese-made goods. On this week’s episode, we speak with Tom Orlik, the Chief Economist at Bloomberg, and the author of the new book "China: The Bubble That Never Pops." He explains China’s resilience, and what could ultimately come back to haunt the Chinese economy.

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