Prof Jesús Seade, Vice-President of Lingnan University, has been interviewed by the Chinese newspaper Ming Pao Daily News recently about his views on the future of the Chinese and global economies. His comments were included in a feature story on the fifth anniversary of the global financial tsunami published on 18 September.
Prof Seade remains optimistic about the Chinese economy, saying that China “is in the right direction” by pushing for economic transformation. He believes that China is capable of leaping over the “middle income trap” that has plagued some Latin American countries for years. However, he cautioned that while China should not abandon low-cost manufacturing, it should also develop high-end manufacturing and services at the same time. Debt problems need to be dealt with as well.
As for the prospects of the global economy, Prof Seade cautioned that the economic indices of the US were mixed and inconsistent, and that the recent recovery had “largely benefitted from incredible fiscal and monetary expansion”. Now that the Federal Reserve is determined to retreat, he questioned where the growth would come from. You may click HERE to read an English translation of Prof Seade’s interview remarks.