| In the Hot Seat with the Chinese Economy During all this time, naturally, Chinese governments loudly claimed credit for double digit national GDP growth. Like good Communists, they continued to write five years plans — vaguely if verbosely predicting multiples fantastic feats of growth. Five years later like clockwork, the same guys who wrote the plan could be heard to proclaim: “see, we crowed and the sun rose!!!!” Post crock, propter crock! Some people even believed them. Mostly economists from Europe and the US. All this was splendid. Who cared how much credit the government took as long as it stayed out of the way? Sure, the government did do some things, like continue to use state banks to fund construction boondoggles or prop up bloated “state-owned-enterprises.” You could see in this massive, multi-billion, misallocations of capital. Or you might observe that these “workfare” schemes seem to have done a lot less damage in China than Western welfare schemes have done to us. Alas, what if all this is changing now? What of Chinese politicians have moved beyond merely stealing credit for the work of their newly free entrepreneurs. What if the politicians now really believe the Chinese economy needs them? Now that would be a disaster. Within a few years, the Chinese economy might be almost as regulated as the US economy. And Chinese growth levels might slip as low as ours — even as low as under a Biden Administration! Will that happen? We don’t think so, but it is far more concerning than the news that dictators act like dictators when defied. The only industry that will survive? Today’s Prophecy: The Chinese miracle can survive a good deal of bullying. But if Chinese regulators start emulating their western liberal counterparts, China could hit a rough patch. 
Richard Vigilante
Lead Analyst, The George Gilder Report 
Steve Waite
Lead Analyst, The George Gilder Report | 
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