First published: Project Syndicate, 24/09/2014
China’s annual growth rate has recently increased from below 6% at the start of 2014 to around 7.5% in the second quarter, helped by a series of stealth stimulus measures. But the growth spurt is unlikely to last – and may reverse – as China seeks to control excessive credit expansion. And achieving longer-term sustainable growth will also depend on political factors – particularly the impact of President Xi Jinping’s anti-corruption campaign, aimed at “purifying” the Chinese Communist Party (CCP).
Xi’s campaign is being carried out on a scale rarely witnessed in China’s recent history…“more:”