The story of China collapsing has moved into a new edition now growth and especially real estate is no longer growing double-digit. Wrong, says author Mario Cavolo, whose book China: The Big Lie? the Truth of Trillions in a Culture of Cash was just published for North America by Sino Media International’s Long River Press.
Standing firm on the view that China will not have a hard landing or broader type of economic crisis and will rather continue expanding for decades, places many pundits including myself in the minority. Which is quite strange to those of us who are positive on China’s economic , because it is actually an easy argument. The impetus here to present such arguments against a hard landing arises from someone with a high level of success, intelligence and experience sharing that same view publicly.
”I think it’s ridiculous. China is clearly slowing, but most of the reason it’s slowing is because the policy makers deliberately want it to slow and get China readjusted. So, as I’ve said for the past two years, China is never going to land anytime soon.”
Mr. O’Neill’s view is worth repeating, “I think its ridiculous. China is never going to land anytime soon.”
Sometimes a bit of rhetoric is needed to wake people up. Mr. O’Neill used the word “ridiculous”, while the other day in response to the Guardian’s recent article indicating that China is “still poor” and has a terrible Gini coefficient, the word “nonsense” was the one I used in response, and that was after I had ceased a bout of uncontrollable laughter. Of course it is imperative that one is able to sensibly substantiate their view before attaching themselves to it publicly so let’s proceed, saving you the $million or so you would probably have to pay Mr. O’Neill to plumb the depths of why he holds this view on China.