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om Doctoroff, Greater China CEO for J.Walter Thompson, on China’s GDP growth and economic climate.
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Said -- at least earlier this week.
Dining at a talk about all of that is -- docked dropped he is.
The greater China CEO.
For JWT and author of -- Chinese want Tom welcome nice to meet she'll thank you very much for -- to be here first set the stage first why is China slowing.
Well I think that that that the question is says that the export models not working so well.
And what the Chinese Government wants to do is gradually rebalance the economy in terms of domestic consumption.
But that's gonna require structural reform which hasn't started really happening in earnest yet so we know that the government the Chinese Government opted no to this round of stimulus did that not.
Follow in today's structural reform that I'm not so sure that -- said no yet I mean there there's and a mess that there's there's -- a some press reports but there's mixed signals coming -- I think that they're gonna have a stimulus.
And I think that they're gonna need to have -- -- -- send signals to the people.
That it's safe to go back in the water I mean there's two factors one is macroeconomic impact but also the psychological impact -- that -- stimulus has.
For the people because they take their signals from the government sure it's interesting you say and mixed signal and conflicting reports the problem with China -- right the government and its structure in the culture.
So how is that going to be a challenge for China.
Well I think that allocating well I think that the Chinese people are always not looking for mixed signals but balance there always hard to avoid extremes.
So what seemed like mixed signals to us are actually trying to calibrate the optimal balance.
To avoid instability.
I think that what they're trying to do right now is you're gonna -- -- we want to have the stimulus but we don't wanna make the mistakes that we made.
In terms of the last stimulus which was a huge but be.
Focused on some non productive investment.
DC a risk Tom a hard landing for China I don't I think that there's one big thing that's happening right in China and that is urbanization.
With urbanization they're building towns and cities on what used to be farmland they're taking people.
Of 1% of their -- rural population every year.
From their rural areas into their urban areas moving from lower productivity jobs to higher productivity jobs.
And that I think gives a lot of room for error so -- don't see.
A hard landing and I also don't think China has over invested yet.
OK so there's room there I think so.
Time dot -- thanks again my pleasure analysis of the situation.
