If you are a business leader, you need to be paying attention to what is happening in China right now. You must look at the analyses with a critical eye. Western economists often analyze the Chinese economy through the lens of a 100-year history of American economic management and policies. This viewpoint risks misreading the nuance of China’s approach under President Xi. He appears to be forging a new economic path. Instead of relying on sweeping fiscal stimuli, President Xi’s strategy involves targeted infusions to combat bubbles and economic imbalances. The recent 4.5% GDP growth suggests this approach may be working.

If this continues, we could witness the birth of a new economic model, challenging over a century of laissez-faire economics.