With the Chinese government even less inclined to adopt market-oriented reforms, a smooth landing from the real estate meltdown looks less likely than ever for China’s faltering economy.
The Communist Party of China’s 20th National Congress, which gave President Xi Jinping an unprecedented third term as general secretary, also featured a leadership shake-up that replaced market-oriented technocrats with Xi loyalists, raising questions about China’s plans for its faltering economy.
Excessive state control, after all, is a tried-and-true recipe for becoming mired in the middle-income trap that Chinese leaders have long vowed to avoid.
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Kenneth Rogoff is a former chief economist of the International Monetary Fund and professor of economics and public policy at Harvard University.
