China dumping its vast excess on the world

Vast overinvestment is self-destructive – and intolerable for the global economy

China’s pro-market weekly, the Economic Observer, says ruefully that this means sticking to “the traditional growth model that overly relies on infrastructure investment”. In crude terms, it means building more factories, and foisting the excess supply onto the world.

Prof Pettis says investment is already 42-44pc of GDP. No major country in modern economic history has come close to these levels before. 

Other Asian tigers peaked in the low-30s before dropping back as they matured.

Ambrose Evans-Pritchard 12 January 2024 

https://www.telegraph.co.uk/business/2024/01/12/chinas-quest-for-growth-is-a-toxic-feedback-loop-of-its-own/


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