Chinese Outlook Unusually Uncertain - Experts |
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January 7, 2012
The outlook for the Chinese economy is cloudier than it has been in years, experts said. The road ahead for China is the "great unanswerable question," said Lawrence Summers, the former top economic adviser to President Barack Obama, in a speech at the American Economic Association meeting Saturday. "Whatever you think the range of possible outcomes is [for China] over the next 25 years, it is wider," Summers said.
Robert Zoellick, the president of the World Bank, said there is widespread recognition that the Chinese growth model, that has been so successful past 30 years, will not work in decades ahead.
China has been an exporting powerhouse, but now must develop its domestic market. But political forces may upend the transition.
"It is not clear China's system is favorable to shift to domestic demand," said Robert Mundell, an economist at Columbia University.
Zoellick urged the U.S. to work with China to assist their strong interest to alter their economy instead of engaging in a tit-for-tat trade war.
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