WCHN - China Has A Bit Of A Dilemma... And By Extension So Does The Rest Of The World
By Stuart Burns
After the last crisis, China was instrumental in spurring global growth and helped pull the West and neighboring economies along with it. Through state stimulus, China achieved double-digit growth, far beyond what its underlying economy would have otherwise been capable.
But such growth came at immense cost, as Zheng Yongnian, a research professor at the East Asian Institute, writes in the Straits Times.
The 2008 stimulus blockbuster spawned many problems, such as overheating of the economy, capital inflation, financial market distortions, inefficient expansion of production capacity and soaring housing