China’s Long-Term Game
- By Alberto Gallo and Tao Pan
- 4 min read
Over the past few decades, Western governments have prioritised short-term economic gains over long-term measures through a combination of asset-based policies and de-regulation. China, instead, is trying something different. Its cross-cyclical strategy pledges to play the long game, improving financial stability, prioritising reforms, and restoring equality and sustainability.
In implementing the reforms, China is cracking down harshly on several sectors. Markets and investors are responding very negatively, including George Soros in a recent article. Yet these policies might be the micro-regulatory actions necessary to rebalance the economy – and could be more effective than the one-size-fits-all monetary policy hammer.
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