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Michael Pettis: China's Economic Growth Model Is Dying

Forward Guidance

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The American Problem in China

Common prosperity is really an attempt to solve the American problem in China, he says. He argues that households account for about 80% of American GDP. In China, households retain around 60%. And businesses, let's call it 20%. It's hard to know where you draw the line between business and government,. But roughly 20% in line with other economies. And the government retains 20%.

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