There is a widespread perception that the Chinese technocrat is some sort of superior being who can tackle policy conundrums that would make mere mortals rush for their Prozac. Such officials are more efficient and capable, we are told, than the mediocrities mismanaging the west.
China’s leaders “may have a more realistic and constructive assessment of the macroeconomic policy challenge than their counterparts in the more advanced economies”, Stephen Roach, the respected Yale economist, wrote in April. Donald Trump, the Republican presidential frontrunner, was even crisper in his judgment: “Their leaders are much smarter than our leaders.”
But the average Chinese leader is just as adept at screwing up his economy as anyone else, perhaps more so. When executives and economists wake up to this reality, the fallout could be severe.