Michael Pettis on the Chinese economy
FT Alphachat
00:00
The Resemblance Between the Chinese Economy and the Japanese Economy of the Late 1980s and Early 1990s
In both cases, policymakers pursued this investment export-led growth strategy. But the biggest difference is that these were pushed to a much further extent in China than they ever were in Japan. And once we go into negative real growth, then almost by definition, debt levels are going to have to rise very, very quickly.
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