China's current economic slowdown is worrying much of the world. It's due, in part, to how the country is having difficulty transitioning between a manufacturing fueled economy to a consumer lead one. The question has become how China can do so without negatively affecting its international partnerships.
Currently, the main approach for China is to encourage its citizens to change from spending to saving and in the meantime somehow take up the difference by creating more debt for itself. Their old growth model had run its course and the citizens in the big cities working at the factories now have to make money that they'd be compelled to spend it on things beyond the necessities.
The United Liberty blog recommended a "Reaganesque Recipe" to help China's economy. They supported President Xi's willingness to adopt a supply-side reform. If China follows through on its reforms then, "...it will simply be a matter of time before living standards reach - and exceed - levels found in western nations."
At the same time China's currency, the yuan is falling faster than normal. As more of China's rich are moving their money out of the country, the price for the yuan fell and to stabilize its value, the central banks have been buying the yuan with the three trillion US dollars its saved.
The Washington Post felt that China's logic in buying their own currency was a big mistake. If the country lets the value of the yuan fall as far as the market dictated then it would eventually get to the point where investors would expect the value to rise and then would want to start buying the currency once it was deemed undervalued and, therefore, a smart investment.
This alternative solution to the currency problem has its own share of drawbacks as well. Even though China would be able to save its USD, the decrease in the value of the yuan would cause a trade conflict with the US and other countries that would use the yuan as a way to subsidize exports.
The International Business Times recommended an approach that is a kind of middle ground between China's current solution and the one recommended by the Washington Post. They said to let the currency fall by a significant amount and then eventually fix the exchange rate so that it won't fall any further. This daily fixing would signal to markets confidence in the country because it has $3.3 trillion in reserves and, therefore, can support its actions.
The solutions described here are not complete - there is much more to the problem than just fixing the currency value or implementing supply-side reform. However, it's through more discussion and solid resolve in whatever solutions they settle on that China can find a way to fix their slowing economy.
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