Welcome to the new version of European Tribune. It's just a new layout, so everything should work as before - please report bugs here.
Navarro has some valid points, which he has had since 2011 when I audited his online Intro Macro course via Coursea. But his ideology may be getting in the way of his assessment of Chinese economic competence. The way they were able to avoid devastation by the GFC in '08 was impressive, even if it did lead to a giant real estate bubble. The US is hardly in a position to fault others for real estate bubbles. Part of this dance was probably made possible by their control over the sizeable state enterprise sector.

My concern is that Trump's rhetoric may be a godsend to the CPC. The Chinese economy has been struggling for the last couple of years and the thing the CPC fears the most is economic failure. Large scale unemployment could produce social unrest and cost the CPC the presumption of 'having the mandate of heaven.' Of course, if they can blame any economic downturn on US disruption, and they certainly will and probably already are, that will greatly aid them surviving the crisis. One thing the Chinese people well understand is the danger of foreign meddling in Chinese affairs.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Feb 2nd, 2017 at 09:13:28 PM EST

Others have rated this comment as follows:


Occasional Series