Guest Column

China's new growth model – does it work?

  • Published 20 May 2010

Professor Horst Loechel of China Europe International Business School assesses China's growth model and its need, in his view, to adopt a fully fledged market economy.

China is without a doubt the 'lucky winner' of the recent global financial and economic crisis. With prudent regulation and supervision, the financial system is healthy and the country has become the locomotive behind the global economy, contributing more than half of the world's economic growth in 2009. Moreover, in the first quarter of 2010, China's growth rate jumped to 11.9% year on year, combined with moderate inflation of 2.4%. There are predictions of 11% growth for the second quarter.

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