What's the reality behind the hype about China's economic slowdown?
Reality Check

Some Western media hype China's economic slowdown, but what's the reality? Many CEOs of U.S. companies have visited China & acknowledged the importance of the Chinese market. Milken Institute's William Lee believes that the world's success depends on China's success.


William Lee: I think most people are cheering for China's success because many of the economies of the world are tied to the success of China, especially in Asia and including the United States. After all, China is a vital part of the global supply chain, of which the United States has benefited. So, I think the real questions, I think, have to settle on what my colleagues have just said: Do we have sufficient domestic demand within China? Will China be able to be the second largest economy that provides an engine for growth for the rest of the world, as the rest of the world is slowing down because it's fighting inflation? 

And China, fortunately, has got the right balance of supply and demand so that it itself domestically has not experienced the kind of inflation we've seen in other parts of the world, including Europe and the United States. And many of the American companies that are in China, from J.P. Morgan to Tesla, to Bill Gates coming to China. They all say the world is committed to staying in China. And the world is committed to China's success because the world's success depends on China's success. So, I think those are the kind of perspectives that are really dominant in the West. 

The questions that are being asked would be: Is China continuing to be a good place for more investment? Should we be putting more money into China? And so, the questions are really much more tactical questions about where best Western dollars should be going. And we're looking for the government for guidance as to where it is that China really wants to make use of foreign capital inflows, which it has clearly invited in the last several statements that President Xi made. So, I think those are the kind of perspectives that we have to keep in mind. And there really isn't an army out there cheering for China's demise. In fact, it's quite the opposite. Everyone is cheering for China's success.

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