Michael Pettis

Michael Pettis News

  • China’s Repression of Savers Eases

  • China's Growth Slowdown Is Welcome, Pettis Writes in FT

    The decline in China’s growth rate is a good thing for the country and the world, Peking University finance professor Michael Pettis writes in the Financial Times.

  • China Falls Victim to Greek Deficit Contagion: Michael Pettis

    China is under growing pressure from Asia, Europe and the U.S. to revalue its currency. Until recently, it even looked like we were about to embark on a sustained process of yuan revaluation fairly soon.

  • China’s Subsidies End Prompts Forecasts for Slower Growth

    Chinese carmaker BYD Co. may be getting some bad news as it prepares to start selling in the U.S. next year. A planned reduction in government subsidies and a phase-out of interest-rate controls threaten to raise costs for it and thousands of companies across China.

  • China Reserve Ratio’s Impact to Deepen With Rates in Flux

    China’s relaxation of interest-rate controls has left cutting banks’ required reserves as the chief monetary tool to counter a slowdown, focusing attention on an option used in the past decade only during financial crises.

  • Foot Massage Doubles and Chinese Doubt Official Price Data

    Lydia Wang, a 28-year-old marketing manager in Shanghai, gripes that the shoes and clothing she normally buys are at least 50 percent pricier than in 2009. Wu Sengyun, a 54-year-old retiree in the coastal city of Ningbo, Zhejiang, says prices of fruit and fish are up more than 20 percent in the past year.

  • Australians Fret About Crash With Fortescue Metals Growth Stock

    Neville Power gazes out the window of a chartered jet at the rust-red, mineral-rich Australian Outback.

  • China Running Out of Room to Restructure Economy

    If we accept the argument that China must, and will, rebalance its economy by reducing its reliance on investment, what happens if it proves politically impossible to cut investment rates sharply? Gross domestic product growth rates would remain very high, but debt levels would also grow unsustainably. At some point, China will reach its debt capacity limits and no longer be able to fund investment.

  • China Reforms Face Headwinds at Home and Abroad

    In the late 1980s, University of Chicago professor Robert Aliber proposed, partly in jest, what he called the Andy Warhol theory of economic growth: “In the future every country will grow rapidly for 15 years.” He had in mind the plethora of so-called miracle economies that seemed to take off one after the other in the postwar era. In every case, decades of high growth, almost always driven by very high levels of investment, eventually faltered.

  • One-Eyed Beast Needs Merkel to Earn the Love: Miriam Meckel

    If German Chancellor Angela Merkel hoped for some international recognition for her country’s role as the economic powerhouse of the European Union, she didn’t get it. And she only has herself to blame.


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