Global imbalances are rising again. One consequence is trade tensions, with accusations of unfair trading practices, threats of retaliation, and escalating trade barriers such as tariffs and export restrictions. Tensions, of course, are fueled by many factors, including political ones.
In a recent article in Bauhinia Magazine, Prof. Steven Barnett from HKU Business School examines the structural challenges facing China's economy. Borrowing from investment disclaimers: past performance is no guarantee of future results. Reform and opening drove decades of success, but the next chapter calls for an updated recipe — with a much bigger role for domestic consumption.
Global growth is stuck in low gear. Just as a car stuck in low gear can only reach a fraction of its potential speed, the global economy is failing to find its former momentum.
