When policy goes awry, the incumbents responsible for the mistake can be, and often are, voted out of office, to be replaced, in principle at least, by more competent rivals.
An authoritarian regime has no such automatic adjustment mechanism. Autocratic leaders will not give up power easily, and may choose, in their wisdom, to double down on failed policies. There is no orderly way of compelling them to do otherwise.
Barry Eichengreen is right; however, Barry doesn't compare China's current system to anything but the current US-type or US-level of so-called democracy. How about we compare the current Chinese system against what could be rather than what is? After all, the US system is far from the best imaginable or doable. The US is not a true democracy but rather a plutocracy. What the world needs everywhere right now is true democracy, not rule by self-appointed elites.