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30.10.2014 16:39:35

Smog-bound Beijing faces marathon adjustment - from Chief Economist & Strategist Keith Wade

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Smog-bound Beijing faces marathon adjustment

October 2014

Keith Wade, Chief Economist & Strategist

A postcard from... Beijing: Keith Wade reflects on his recent visit to China where he sensed a move away from market-based solutions towards a greater centralisation of power.

Shark fin soup is off the menu in Beijing as the authorities continue with an anti-corruption drive which has seen dozens of officials placed under investigation. The policy has hit the top end of the economy and slowed growth, but it remains a key and popular part of Premier Xi Jinping's strategy. That strategy is now evolving to face the challenge of an unbalanced economy and slowing property market. Having spent the past week meeting with policymakers, economists and analysts in Beijing and Hong Kong, I have a sense that China is moving away from market-based solutions towards a greater centralisation of power. 
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