China could maintain longterm GDP growth in the 5-6% range with successful reforms

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One analysis of China’s economic reform concludes that China could still achieve 6% GDP growth in 2020. However, if economic reform fails then China would slow to 3% per year GDP growth or worse.

We conclude that the overhaul is well conceived and showing movement, and that if fully implemented can sustain growth at 6% through 2020,” Rosen told the Global Markets Forum. “Keeping GDP at or above 6% though 2020 delivers a $14.4 trillion Chinese GDP, which supports $10 trillion in two-way financial flows and a Chinese trade deficit thanks to greater imports. That’s great for the region and great for the global outlook.”

Rosen has been analyzing China’s economy for about two decades, first at the Peterson Institute, then at the White House/National Security Council and most recently at the Rhodium Group, a research and advisory group he co-founded.

Avoiding the Blind Alley: China’s Economic Overhaul and Its Global Implications (192 pages) offers new insights on the changing profile and prospects of what will soon be the world’s largest economy. Written by Daniel H. Rosen, the report clarifies the ambitions of China’s economic reform program, assesses the progress China has made in implementing reforms, and forecasts the economic impacts the program will have on China and the world.