The Economist fails to recognize the gist of economic policy changes in China. They focus on lockdowns and “crackdowns”, instead of the accelerated transition of the Chinese economy from a former successful growth model to the new growth path of the 2020s /The Economist, Jan 22nd 2022/.
China rightly spotted the very nature of the new decade. These are warring times, the previous peaceful global economic order is over. There are new types of hostilities from pandemics to sanctions, there is war-time inflation and new energy shocks fueled by geopolitical decisions.
In a nutshell, we entered the chapter of a new cold war initiated by the American Empire. China rightly expects new waves of surprises in the global financial system and in international trade.
All these unpleasant changes will accelerate China’s transition to a new growth path based on sustainable energy sources, new technologies, high-end products and services, smart government/central bank’s regulations, central bank’s digital currency, and many more.
Governor Matolcsy, MNB, the Central Bank of Hungary
Re “As China’s economy slows, policymakers seek to revive growth”