Posted 12/8/2023, 12:06:47 AM
China Faces Economic Challenges as Debt Mounts and Export-Driven Model Stalls
- China's debt has soared to nearly 3 times GDP, similar to Western countries, posing risks of a crisis
- China has repeatedly used debt-fueled stimulus to boost growth, leading to excess capacity and lower returns
- China's growth is slowing and it faces similar demographic and economic challenges as the West
- China's export-led model is running out of steam as trading partners aim to reduce reliance on China
- Boosting domestic consumption is needed but politically difficult; China must evolve its economic model to sustain prosperity