In October, the CKGSB Business Conditions Index (BCI) dropped slightly from the worst reading to date in September, from 41.9 to 41.4. Although not quite as dramatic a decline as the previous month, the deterioration of conditions for doing business in China should not be underestimated. It shows that the majority of sampled companies, some of the most competitive private businesses in China, are pessimistic about their prospects for the next six months.
Nicholas R. Lardy, the Anthony M. Solomon Senior Fellow at the Washington D.C.-based Peterson Institute of International Economics, has been watching the Chinese economy for more than three decades now. His first book on China – Economic Growth and Distribution in China – was published in 1978. Over the years, Lardy has chronicled the rise of the […]