Three misconceptions in the US about China’s economy
"The Chinese have defied a lot of naysaying for close to 40 years, and I think that will continue to be the case"
Former chairman of Morgan Stanley Asia talked to CNBC about the three main misconceptions he sees being thrown around about China’s economy:
“Number one, they have pushed their system to the point of Japanese style implosion, with all the debt, and I think that is wrong.
And, number two, that they have a centrally planned economic structure, every bit of which is driven by the government, and I think that’s wrong. I think that the private economy is actually thriving.
And, number three, the west does not believe that China innovates. It continues to believe that China is aggressive at stealing intellectual property, and yet, the wave of innovation that is evident in their private-based economy, anything from e-commerce to medical sciences, is really quite spectacular right now. […]
The Chinese have defied a lot of naysaying for close to 40 years, and I think that will continue to be the case. All the talk about a crash landing, a slowdown, a debt-induced Japanese-like end game, those fears are largely overblown. […]
With the economy performing better than expected, the stock market should conform to that. But I’ve long learned that the connection between the Chinese economy and the stock market is a tenuous one at best.”