Stephen S. Roach for PS On Point: China's Rebalancing Imperative

Don't miss a new PS Say More with Minxin Pei and a new PS Big Picture on the Iran-Israel attacks, featuring Gareth Evans, Dennis Ross, and more. [View this message in a web browser]( [PS On Point]( APRIL 19, 2024 The most successful development stories almost always involve major shifts in the sources of economic growth, which in turn allow economies to reinvent themselves out of necessity or by design. In China, writes Yale's Stephen S. Roach, the interplay of mounting external pressures, lagging household consumption, and falling productivity will increasingly shape China’s policy choices in the years ahead. [Read more]( [PS. To access the new issue of PS Quarterly, subscribe to Premium now.]( [PS Longer Reads: China’s Rebalancing Imperative]( [China’s Rebalancing Imperative]( By Stephen S. Roach China’s deeply entrenched countercyclical policy mindset is misaligned with its structural challenges: mounting deflationary risks, exacerbated by the lethal interplay between a rapidly aging population and serious productivity problems. The authorities need to devise a new response to unleash consumption-led growth. [Read more]( [PS Big Picture: An Iran-Israel War?]( [An Iran-Israel War?]( with Gareth Evans, Daoud Kuttab, Dennis Ross, and Joschka Fischer Iran’s mass ballistic missile and drone attack on Israel last week – and Israel's recent retaliation – raised anew the specter of a widening Middle East war that draws in Iran and its proxies, as well as Western countries like the United States. The urgent need to defuse tensions – starting by ending Israel’s war in Gaza and pursuing a lasting political solution to the Israeli-Palestinian conflict – is obvious, but can it be done? [Read more]( [PS Say More: Minxin Pei on China’s economy, surveillance state, repression of dissent, and more]( [Minxin Pei on China’s economy, surveillance state, repression of dissent, and more]( Minxin Pei doubts China’s government is willing to do what is needed to restore growth, describes the low-tech approaches taken by the country’s vast security apparatus, considers the Chinese social-credit system’s repressive potential, and more. Pei is Professor of Government at Claremont McKenna College, a non-resident senior fellow at the German Marshall Fund of the United States, and the author of [The Sentinel State: Surveillance and the Survival of Dictatorship in China](. [Read more]( [PS Longer Reads: Governments Must Shape AI's Future]( [Governments Must Shape AI's Future]( By Mariana Mazzucato and Fausto Gernone As with social media, the incentives around AI are aligned for rent extraction, where large companies, acting as intermediaries, amass profits at others’ expense. Governments urgently need to step in to ensure that the technology is being designed and brought to market in ways that will serve the common good. [Read more]( [PS. Catch all the conversations from our latest virtual event, Now or Never for AI Policy?]( [Facebook]( [Twitter]( [LinkedIn]( Project Syndicate publishes and provides, on a not-for-profit basis, original commentary by the world's leading thinkers to more than 500 media outlets in over 150 countries. Receipt of this newsletter does not guarantee rights to re-publish any of its content. This newsletter is a service of [Project Syndicate](. [Change your newsletter preferences](. Follow us on [Facebook]( [Twitter]( and [YouTube](. © Project Syndicate, all rights reserved. [Unsubscribe from all newsletters](.