I have been a skeptic of the Chinese growth miracle for some time. This excellent piece by Edward Chancellor, titled China’s Red Flags makes raises several objections to the bullish story.
Chancellor points out the similarities to the similar mania around Japan in the 80s when it was argued that their economic growth was due to their central planners’ ability to pick winners and direct investment into those sectors.
A prominent British investor recently announced that he was coming out of retirement to run a China fund. Among his reasons for being bullish was the “effectiveness of central planning.”
