“The Big Picture from West to East”
In the January 25, 2011 issue of The Economist, Booz & Company Senior Partner Edward Tse, the firm’s Chairman for Greater China, said he expected China’s economy will continue to grow at around 8 percent or 9 percent annually for the “foreseeable future,” as Chinese companies have become bona fide world-class competitors. “In my view, China still has a lot of room for fast economic growth but, at the same time, some of these issues like inflation will need to be carefully observed and managed,” Tse said. However, China needed to address the issue of its shrinking labor force due to the effect of the one-child policy instituted two decades ago, he said, and unless that demographic shift is resolved, China’s population will get older and its workforce will shrink. Tse added that Beijing is rethinking its one-child policy and will institute reforms to avoid hurting the country’s future economic growth.