China’s hokey-cokey approach to reform

Fathom Consulting // Insights // China’s hokey-cokey approach to reform

In the past, when efforts to rebalance have triggered a slowdown, China has thrown in the towel, opting to support economic growth while exacerbating domestic and global imbalances. With the Fathom measure of China’s economic activity (our China Momentum Indicator 2.0) pointing to a slowing of growth amid escalating trade tensions, we argued earlier this year that China’s policymakers would do just that – resort to China’s old growth model – in a bid to support growth. Recent data and…