Jonathan Woetzel
China’s investment-led growth model has served it extraordinarily well, setting it on course to become one of the world’s advanced economies. Yet the strains associated with that approach have become evident.
Since 2015 the country’s gross domestic product growth has dipped to 25-year lows, corporate debt has soared, foreign reserves have fallen by $800 billion and the stock market has dropped by nearly 40 per cent.
A long tail of poorly performing companies pulls down the average, although top-performing Chinese companies often have returns comparable with those of top US companies in their industries. More than 80 per cent of economic profit comes from financial services …
Read the full article at: http://www.afr.com/opinion/columnists/china-faces-a-choice-modernise-or-risk-a-very-hard-landing-20180301-h0wugl