Decent if unremarkable editorial in the New York Times today about China's economy. The reason I say unremarkable is that the major policy suggestions included are pretty much agreed upon by most economists and politicians in China and elsewhere. We're talking about increasing domestic spending, moving away from export industries, revaluing the RMB, strengthening the social insurance system, better protection of the environment. Not exactly controversial stuff, so the editors are not exactly going out on a limb with this.

The editorial ends quite well, however, including not only a mild rebuke of Beijing's slowness in adopting these policies, but also a smack against critics in Washington whose rhetoric is often counter-productive:

The Chinese leadership realized the need to “re-balance” growth in 2004. They have taken some small steps, including modest increases in health spending and tax cuts, but they have been too timid to push hard toward a new strategy. At the local level, export growth remains the only real objective.

Beijing must realize that China’s stability depends on the deft management of the transition from booming export-led growth to broadly based economic development that is less damaging to the environment and more widely shared. In this country, lawmakers who would punish China need to understand that they are merely fostering Chinese resentment and making it easier for special interests to resist reform by waving the flag. Chest-thumping in Washington makes things worse.