A leading China analyst has warned that the Chinese economy could be in for a hard landing that risks triggering a global recession, according to The Australian Financial Review.
Peking University professor Yiping Huang warned at an ANU China Update 2013 conference in Canberra that the Chinese government must address structural imbalances if it is to avoid an economic slump.
Mr Huang pointed specifically to the country's transition from an export-led economy to one based on domestic consumption.
“The days of 10 per cent growth are over and we are looking at a growth potential now of between six and eight per cent,” Mr Huang said, according to the AFR.
“Transition of the growth model is already under way and could lead to slower growth, higher inflation pressure, improved income distribution, more balanced economic structure and more volatile economic cycles.
“We might actually see some kind of harder landing than people had in mind, and if that happens, given the close links between Chinese growth and economic growth in the region and growth in the rest of the world, we might actually see the first China-induced global recession.”
