China’s Urge to Splurge Is the Wrong Growth Model
Treating massive projects as disposable does the economy no favors.
Shenzhen’s stock exchange: The grander the better.
Photographer: Qilai Shen/Bloomberg
Economic growth is frequently thought of as the marriage of policy frameworks and market outcomes, with little consideration of path dependence and social preferences. In China, examining those preferences and the costs they impose gives just as much insight into what has shaped the nation as a study of macro decisions.
Modern China is defined by the grandiosity of its vision. Consider the unceasing laying of high-speed rail, constant attempts to build Asia’s tallest building, or the urban technological dystopia represented by total surveillance. The colossal scale of the Shenzhen stock exchange is a good example of the need to project an imposing edifice.