China doesn't understand the unpredictability of a dynamic economy, Edmund Phelps, winner of the 2006 Nobel prize for economics, told CNBC's Squawk Box.
Phelps said he sympathized with Chinese policymakers who have had to deal with rapid changes in the world's second-largest economy in recent years, having been accustomed to rapid expansion in the past two decades.
"An economy that's full of dynamism and people using their imagination and their creativity, such an economy is not predictable," said Phelps, who is currently the director of the Center on Capitalism and Society at Columbia University.
"Nobody knows exactly in what directions the economy is going to be moving and how fast it's going to be getting there. And this is something the Chinese are totally unfamiliar with," he said.