China’s Economic Crisis Is Its Own Doing

State planning is a liability, not an asset

U.S. Trade Representative Robert Lighthizer (4th L), Treasury Secretary Steven Mnuchin (3rd L), Commerce Secretary Wilbur Ross, White House economic adviser Larry Kudlow, and White House trade adviser Peter Navarro pose for a photograph with China’s Vice Premier Liu He (4th R), Chinese vice ministers, and senior officials before the start of U.S.-China trade talks at the White House on Feb. 21, 2019. Joshua Roberts/Reuters

Commentary

From both official and nongovernment figures, it’s clear the Chinese economy is in dire straits. In the second half of 2018, estimates of China’s GDP growth ranged from around 6 percent to negative 1.6 percent, indicating a sustained downturn.