China's Economy Has Not Peaked

January 7, 2025--Chinese policymakers should allow for a more market-driven allocation of land, money, and labor.
Summary
China's GDP is growing. Youth unemployment is down. And the property-market crisis is moderating. But the economy's dynamism is missing.

Rather than use "normal" policy tools, such as interest rates and fiscal spending, to address low consumption or deflationary pressures, Chinese policymakers should be pursuing fundamental reforms that address the issues underlying these problems. The key is to allow for a more market-driven allocation of land, money, and labor.

China's Economy Has Not Peaked