Supply Shock China's Old Economic Model Is Dying | Leland Miller
13 snips
Oct 4, 2023 Leland Miller, CEO of China Beige Book, discusses the death of China's old economic model. They debunk the misconception of China's imminent collapse, explore China's economic growth expectations vs reality, analyze China's inflation data, discuss China's economic model and its impact on the global economy, explore the possibility of decoupling the economic activity between the United States and China, and discuss trade tariffs on steel imports from China.
AI Snips
Chapters
Transcript
Episode notes
China's Economy: Recovery, Not Collapse
- China's economy is experiencing a pathetic recovery, not a collapse.
- This is evidenced by sequential growth in consumption and manufacturing, despite property sector woes.
China's Recovery Different From US
- Expectations of a rapid China recovery, similar to the US post-lockdown, were misplaced.
- Dissimilar economic structures and lack of stimulus in China contributed to slower growth.
China's Financial System
- China's non-commercial financial system, controlled by the government, prevents Lehman-like moments.
- However, this system leads to lower productivity and slower growth in the long run.