China’s Risky Reforms By Ian Bremmer & David Gordon:The Chinese authorities’ grand policy pronouncements of recent months have given rise to serious concerns about President Xi Jinping’s ability to overcome the powerful vested interests that are impeding economic rebalancing and long-term growth. Can China sustain its rapid economic and political rise, or will domestic malaise undermine its regional and global ambitions?

China’s Risky Reforms

Ian Bremmer & David Gordon: “China is on the brink of large, necessary, and dangerous transformations that promise to change the country for the better – or make everything, including regional stability, much worse.”

Reviving China’s Rebalancing

Yu Yongding: “The question is whether China’s leaders – preoccupied with challenges like financial instability stemming from risky shadow-banking activities and a heavy burden of local-government debt – have the policy space to put the economy on a sounder footing.”

Friendless China

Brahma Chellaney: “At a time when China’s territorial assertiveness has strained its ties with many countries in the region, and its once-tight hold on Myanmar has weakened, its deteriorating relationship with North Korea, once its vassal, renders it a power with no real allies.”

China’s Risky Credit Boom

Andrew Sheng & Xiao Geng: “The current divergence between official and shadow lending rates in China parallels the gap between the renminbi’s official and swap market (unofficial) exchange rates in the 1980’s.”