Monday, October 10, 2011

Gao Xiqing comments on US system

Gao Xiqing, head of the $00 billion sovereign wealth fund On Charlie Rose- "somehow, your system has come to some sort of a dead end"

Does this sound like the Japanese in the 1980's? The sustainability of growth in China is as great an issue as growth in the US. The US model is viewed as suspect by the Chinese, yet it is not clear what is the Chinese approach. Red capitalism with state activity and direction does not seem to be viable over the long-run. Others have tried this approach with limited success. For the Chinese, strong private growth has not really taken off until WTO entry. China cannot separate itself from the US. China needs strong growth in the US.

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