China Stimulated Its Economy Like Crazy After The Financial Crisis … And Now The Nightmare Is Beginning
June 17, 2013
China is seeing slower economic growth.
Concerns are building over a massive credit bubble, and some say it is no longer an engine of global growth.
Excess capacity — in which demand for products is less than potential supply — continues to be one of China’s biggest problems.
An excellent piece by Jamil Anderlini in today’s Financial Times looks at how excess capacity and subsidies are threatening specific industries and imperiling the Chinese economy.
A major contributor to this excess capacity problem: China’s investment-led growth-model role in the nation’s excess capacity problem.