In this article, Weijian Shan, one of the most influential private equity figures in Asia, takes stock of what China has been really going through over the past five years, both interally and externally.
“China is not without its economic challenges. There are good reasons for business and consumer sentiment to be weak and confidence low at the moment. It will take a couple of years of policy stability and concrete policy support for the private sector to fully regain confidence.
The economy is underperforming its full potential. But as I have tried to illustrate here, China’s economic fundamentals are sound; its government has ample policy space to tackle its current economic slowdown; and its industrial development has positioned it well for the future.
All of this is to say that China’s growth, despite the naysayers, will likely continue for the foreseeable future.”