The China Syndrome

China’s economy must slow dramatically, here’s why. China’s growth over the last few decades has been based on huge government investment. But good projects are getting hard to find and rich countries are growing slowly, if at all. Thus exports and export-lead investment will slow. To compensate, China must boost domestic consumption, now just 35% of GDP; here it’s 70%! This rebalancing must occur and will reduce growth rates.

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