Michael Pettis writes: \u00a0The choice, in other words, is not between hard landing and soft landing. China will either choose a \u201clong landing\u201d, in which growth rates drop sharply but in a controlled way such that unemployment remains reasonable even as GDP growth drops to 3% or less, or it will choose what analysts will at first hail as a soft landing \u2013 a few years of continued growth of 6-7% \u2013 followed by a collapse in growth and soaring unemployment.<\/p>\n
A \u201csoft landing\u201d would, in this case, simply be a prelude to a very serious and destabilizing contraction in growth. Rather than hail the soft landing as a signal that Beijing is succeeding in managing the economic adjustment, it should be seen as an indication that Beijing has not been able to implement the reforms that it knows it must implement. A \u201csoft landing\u201d should increase our fear of a subsequent \u201chard landing\u201d. It is not an alternative. \u00a0 \u00a0China Rebalances<\/a><\/strong><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Michael Pettis writes: \u00a0The choice, in other words, is not between hard landing and soft landing. China will either choose a \u201clong landing\u201d, in which growth rates drop sharply but in a controlled way such that unemployment remains reasonable even … Continue reading ![\"China's](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2014\/09\/Chinas-Economy-300x184.jpg\")
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