China Pessimism
Soros continued to take a dim view on China, saying the nation is at a decision point and must choose whether to become a more open or closed society as it transitions to a consumer-led economy.
“China has not actually succeeded yet in changing its growth model and probably won’t do it in the next two years because Xi Jinping wants to maintain an unsustainable rate of growth,” he said. Xi “is doing that by rekindling the furnaces and producing more goods that are already in supply.”
Soros’s outlook on China has yet to prove accurate. At last year’s Davos gathering, Soros said China’s economy is facing a hard landing, a situation that will contribute to global deflationary pressures and prompted him to wager against U.S. stocks.
This article was provided by Bloomberg News.