March 15th, 2012 | University

Chinese economy still solid, Roach says at conference

Stephen Roach said the Chinese economy is doing fine.
Stephen Roach said the Chinese economy is doing fine. Photo by Wikimedia Commons.

Next time they’re in New Haven, certain economists might consider stopping by Stephen Roach’s “Next China” class.

Roach, the former chairman of Morgan Stanley Asia, said at a conference in Shanghai last week that speculation that the Chinese economy will enter a hard landing are “vastly overblown,” according to a report from Bloomberg. China has been controlling inflation well, Roach says — its banking system will not collapse, and its property bubble will not burst.

Roach pinpointed the increasing dependence on fixed-asset investment and the decline in private consumption as potential obstacles to economic growth, according to Bloomberg. Adding job opportunities and boosting wages would also stimulate consumption, and the economy.