Huang Yiping on China's Need for Bold Economic Reforms

"Why does a country as large as China only have the 'New Three'? … We should be seeing the emergence of the 'New Three Hundred', the 'New Three Thousand' or [even] the 'New Thirty Thousand'."

Today’s edition begins with an introduction by Tyler Cowen, professor of economics at George Mason University, director of the Mercatus Centre and host of the Marginal Revolution blog. I am forever grateful for his early belief in, and support of, this newsletter. — Thomas

Overall, I am modestly more optimistic about the Chinese economy than many of my economist peers.

I do see some major problems in the Chinese economy currently, starting with a hangover from a real estate bubble, deflationary pressures, and the exhaustion of low-hanging fruit from more and more infrastructure construction.

Many others worry about the aging of China. I do too, but Chinese retirement ages in the past have been exceptionally low. By raising them, as is now happening, China can extend the reach of its current labor force beyond what demographic variables alone might suggest.

It is on the human capital dimension that China really shines. The country has long been literate, but now is well-educated by global …