Directional vs Technical Economic Problems

Updated: 2025.09.26 26D ago 3 sources
Monetary or fiscal tweaks ('technical problems') can’t fix growth slowdowns if the economic 'direction' is wrong—i.e., if institutions privilege state steering over entrepreneurial discovery. Zhang argues China’s slowdown is rooted in this directional misalignment. — It reframes stagnation debates away from stimulus timing toward institutional design and the limits of industrial policy.

Sources

Yao Yang on China's Era of "Correction" (Part 1)
Thomas des Garets Geddes 2025.09.26 78% relevant
Yao argues China’s problem is strategic 'direction'—over‑tightened controls and an obsession with catch‑up tech—rather than a lack of technical policy tweaks; he calls for pivoting toward domestic demand, service‑sector growth, and a tax/finance overhaul instead of simply 'doubling down' on industrial policy.
China's Future Rests on 200 Million Precarious Workers
msmash 2025.09.19 50% relevant
The article spotlights institutional frictions—hukou exclusion and contract‑free 'flexible' employment—driving weak consumption and unemployment, aligning with the thesis that China’s slowdown stems from systemic 'direction' choices rather than short‑term macro fixes.
The Industrial Policy Debate of 2016: Zhang Weiying on Entrepreneurs and Innovation (Part 2)
Thomas des Garets Geddes 2025.08.27 100% relevant
Zhang’s 2024 speech labeling China’s slowdown a 'directional problem' not solvable by 'technical' adjustments.
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