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Is China’s High-Quality Investment Output Economically Viable?

Reddit r/China·u/Virtual-Alps-2888·about 1 month ago
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Is China’s High-Quality Investment Output Economically Viable? Some key details which I think are relevant to the discussions often had here: 1. The claims of Chinese technological, manufacturing and infrastructure superiority are often conflicted by: evidence of Chinese soaring debt, overinvestment, persistent surplus trade leading to Japan-like future stagnation. The article argues that there is both stories are true. 2. Overinvestment is when acceleration in infrastructure and manufacturing is more than what the economy needs, to keep the politicised GDP growth targets artificially high. 3. Overinvestment may result in infrastructure and technological superiority, but it also leads to unsustainable, persistent costs that lead to rising debt and capitalised loss. The end result is long-term GDP growth stagnation. 4. China is not unique in economic history for exceptional technological growth that proved unsustainable.…

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