OPINION

Two wrong theories about China

News, Noah Smith, Published on 25/02/2016

» Western observers struggle to make sense of what's happening to the Chinese economy. Since China is slowing, dragging down commodity prices and forcing a number of other countries into recession, this in an important problem to puzzle out. But how should we evaluate China's economy? I find that western writers tend to subscribe -- explicitly or implicitly -- to one of two folk theories of China. Both have serious deficiencies.