Thanks for the write-up. I would say your pendulum analogy is not unique to China but rather its how all countries operate in their quest to allocate economic resources under scarcity. Every country must balance economic growth, innovation, and country level competitiveness with policy spillover effects. When policy mandates get taken to…
Thanks for the write-up. I would say your pendulum analogy is not unique to China but rather its how all countries operate in their quest to allocate economic resources under scarcity. Every country must balance economic growth, innovation, and country level competitiveness with policy spillover effects. When policy mandates get taken to their extreme, the spillover become more apparent swinging the pendulum back (government intervention or marginal growth rates goes negative with competition).
How the pendulum swings back, in my opinion, matters. I would argue that it’s more important to get this part right than it is to chase the next hot trend (AI, EV, semi’s, etc). My concern with China has always been how they approached this. I’m not disagreeing with their idea of managing the excesses in the Economy, I just think there are better and less economically destructive ways to go about cracking down without taken the entire economy with it. The answer is really transparency and a better understanding of the market mechanism.
Thanks for the write-up. I would say your pendulum analogy is not unique to China but rather its how all countries operate in their quest to allocate economic resources under scarcity. Every country must balance economic growth, innovation, and country level competitiveness with policy spillover effects. When policy mandates get taken to their extreme, the spillover become more apparent swinging the pendulum back (government intervention or marginal growth rates goes negative with competition).
How the pendulum swings back, in my opinion, matters. I would argue that it’s more important to get this part right than it is to chase the next hot trend (AI, EV, semi’s, etc). My concern with China has always been how they approached this. I’m not disagreeing with their idea of managing the excesses in the Economy, I just think there are better and less economically destructive ways to go about cracking down without taken the entire economy with it. The answer is really transparency and a better understanding of the market mechanism.