China Will Have A ‘Long Landing,’ Says Pettis

The debate over whether China is going to experience a hard or soft landing is likely to last for a few more years as the country transitions away from a growth model driven by cheap credit and major exports (unless the hard landing thesis suddenly becomes true, of course), but Guanghua School of Management, Peking University professor of finance and author of The Volatility Machine: Emerging Economics and the Threat of Financial Collapse Michael Pettis thinks that this dichotomy misses the point. “I’ve never been very impressed with the hard landing/soft landing debate because I think it misunderstands the Chinese economy…