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Michael Pettis on Persistent Imbalances in Post-Pandemic China
Odd Lots
The Trade-Off Between Economic Growth and More Debt
Beijing is obviously looking at a trade-off between economic growth and more debt accumulation. In a couple of weeks, we'll start the famous two sessions where they set out plans for the year. It's clear that there is a ferocious debate about growth versus debt. You cannot get debt under control in my opinion unless you're willing to accept growth rates of 2% to 3%.
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