Economist Ke Long (柯隆) identifies the economic management of the Xi Jinping administration as involving “two major blunders.” He argues that excessive government intervention is undermining corporate vitality and weakening the competitiveness of the private sector.
While describing the current state-led support for the growth of advanced industries such as EVs, AI and humanoid robots, Ke Long (柯隆) argues that government intervention has led to a proliferation of companies and oversupply, weakening the vitality of the private sector. He says he will examine the merits and drawbacks of the Xi Jinping administration's economic management by comparing it with the era of Deng Xiaoping.
He identifies three China risks threatening Japanese companies: first, problems in business practices arising from differences in attitudes toward contracts; second, the risk of policy changes; and third, geopolitical risk. He points out that policy changes should be preceded by prior notice and a transition period, stressing that sudden changes to the rules could overturn investment decisions.