China’s Mixed Economic Signals

By Clifford Hwang

China’s economy is a key factor that will affect the health of the global economy. However, its health is far from certain. There are mixed signals regarding the health of the Chinese economy: the official growth rate for the third quarter was lowered to 6.9 percent, yet there are some economists who believe China’s growth rate is actually closer to three percent. Furthermore, China’s commitment to economic reform is also uncertain. While President Xi Jinping has expounded that economic reform is key to continued growth, the policies that China has adopted tell a different story. Most recently the government released a paper stating that it will not loosen its grip on state-owned enterprises, which goes against the need for market-oriented reforms. Find out more about China’s mixed signals here.