China's GDP Mirage, Investment Risks, and Financial Overhaul with George Magnus

China wants to de-risk its economy away from the US and US allies. As former UBS economist George Magnus put it in this episode of Global Macro Update, China has been “pursuing policies that we would now call decoupling” for the past 10 or 15 years. Its goal is to “establish dominant market shares of 70% or more in a range of modern industries at the frontier of science and technology.”
George is the author of several books, including Red Flags: How Xi’s China Is in Jeopardy. He’s also an associate at Oxford University’s China Centre. He speaks to Mauldin Economics Publisher Ed D’Agostino about everything investors need to know about China today.
You can learn more about George Magnus here:
www.georgemagnus.com
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/ eddagostino
Time stamps:
00:00 - Introduction
02:48 - China is decoupling from the US, too
08:45 - De-risking is an ongoing process
12:09 - Magnus explains if China is investable
17:35 - Japan’s rapid aging problem
24:38 - China’s economy surpassing the US is not inevitable
31:35 - China’s new financial architecture

[@carloshour8263]

What an awkward end to a great interview

[@namelesswarrior4760]

Mr George Magnus is a proper financial expert!

[@bobhill4582]

Excellent interview Ed! Thank you!

[@advocate1563]

Clever man Mr Magnus

[@charliecheng3340]

I thought he is a dumb head . He keep on saying China Xi say 2025. He forgot it’s the US like Hillary Clinton and Obama instigated the word “ Pivot to Asia” it means the US has to start making China not to be too big the US can get enslave by China

[@HappyDT]

George is so smart and should be advising Western Governments how to grow their economies 5% per annum and reduce their gigantic debts & unbridled deficits.

[@brotherbig4651]

China is debt burdened is higher than most western countries including the US.

[@yttean98]

G. Magnus is such an authority in identifying China major problems for many years and none of them have posed serious problems so far. Now that his homeland, UK is facing Many serious economic problems he should really divert his attention and using his skills as economist in Neoliberal economics in advising the UK authorities in how to solve all these serious problems they are facing now. Otherwise, the UK's economy will drift into the deep end.

[@georgescott6049]

You earned your place at the head of China's 50c army! ❤

[@yttean98]

@@georgescott6049 When you upset the wrath of a superpower you can never know what its army can perform it would be beyond your expectations. Just like the west underestimating the might of the Russian army in Ukraine.

[@cstevenson5256]

Not true, Magnus has identified every weak point, but has never said of China's closed capital account that they couldn't keep deepening them. If they opened their Capital Market at 9AM tomorrow morning, their financial system would have collapsed by 9:15. We all know that, some of us since 2003.

[@yttean98]

@@cstevenson5256 since 2003, is saying you will die one day. If you are smart and confident what you are saying you must and should give a period(timeline) when it will occur otherwise it is ALL talk and conjecture. It si like saying the UK economy will collapse one day which is today.

[@cstevenson5256]

​@yttean98 why should one give a time because uneducated fools imagine it to be important to influence them or because over-expectant entitled tw*ts imagine it necessary and that ithers care what they want. I understand that you are fragile and that you have been conditioned to imagine that others humiliate you and that you are a vi Tim, but understand, others don't owe you anything. You have a dig in this fight and something to do, then prove wrong. Oh can't, just run around others ha e to do at your command Am sorry little Emperor but I am not at your disposition.

[@gavinyoshino87]

"Promo sm" 😆

[@namelesswarrior4760]

We call it being "Self-reliance and Self-sufficiency! But China's policies are not as toxic and high risks as the west.

[@Andy-P]

To the western democracies China & China's best friend Russia are a threat.

[@Houthiandtheblowfish]

remmeber if our subsidies are capitalistic but theirs is market manipulating communisim

[@charliecheng3340]

@@Houthiandtheblowfishthey have to otherwise, how they are able lift 800 million of their comrade to middle class

[@haominwei5702]

@@Houthiandtheblowfish Open the door, free trade

[@sunnytneoh3126]

If anything China's GDP may be understated as many activities are informal. This UK economist should use his brain to help Sunak rescue postBrexit UK or just change his name to UKs Gordon Chang