Episode description
In the latest episode of “Talking Trade,” co-hosts Sandi Siegel and Ken Wasylik interview Ian Coxhead, senior research fellow for the Institute of Developing Economies in Tokyo, Japan, about trade policy and Asian economics.
Coxhead, a former host of the show, shares his perspective on China’s economy, noting its central economic role for other nations in Asia.
“Before the global financial crisis, China was doing great with all of these policies and efficiency gains. Since about 2010, a lot less growth. And this year, much, much less growth in the Chinese economy,” he said.
He explains China has been challenged by slow growth, aging population, a shrinking labor force and financial instability.
“All of these things are not the product of the Trump trade wars and the terrible Chinese response to COVID-19, but they have been exacerbated by those as well,” he said. “Chinese households, they’re getting scared. Their savings are tied up in real assets and stuff like that, so they’re really unwilling to spend at the moment.”
Coxhead added Chinese skilled labor is still very limited, despite national workforce investments. And major efforts, such as the global Belt and Road Initiative infrastructure project, have been “very costly with very little payoff” for the country’s economy.
He also highlights ripple effects on other middle-income countries that have relied on the Chinese market to prop up their growth.