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Opinion
William Pesek

China's Boom Has World Bank Worried

A warning that sudden wealth can warp priorities.
What goes up, must come down.

What goes up, must come down.

Photographer:

The World Bank has a timely warning for Chinese President Xi Jinping: Don't let all that money go to your head.                         

The global lender didn't refer directly to Shanghai's stock boom or the Asian Infrastructure Investment Bank (Beijing's attempt to develop a World Bank of its own). Nor did it have to. By urging Beijing to clamp down on wasteful investment, unsustainable debt, and a shadow banking industry run amok, it was delivering a clear enough warning that President Xi should stop fanning China's giant asset bubble. The World Bank was also implying China should get its own economic house in order before trying to change the global economy.