Economist Nouriel Roubini, renowned for his foretelling of doom and gloom in financial markets, has cast his doubts on China's ability to reform its economy adding that the possibility of a hard landing is yet to be ruled out.
Roubini, the co-founder of Roubini Global Economics, speaking at an event at the World Economic in Davos, said that the economy is too reliant on fixed income investment and the country had imbalances between the quantity and quality of its growth. He said that poor air quality and safety issues in China were examples of how it has failed to grow in an adequate manner.
"I worry that this is going to be a gradual process and China is not going to rebalance fast enough, compared to what is desirable and optimal, and therefore the risk of a potential hard landing have not been totally, actually cleared yet," he said.
(Read More: The Chinese are coming – to Davos)
"They (the government) could be successful in this rebalancing but I would like to point out some elements, or at least skepticism, of why things might not turn out. And if you don't rebalance, instead of a soft landing you get a hard landing."