- There is increasingly a consensus in Beijing that China’s excessive reliance on surging debt in recent years has made the country’s growth model unsustainable.
- Investment in property and infrastructure doesn’t inherently cause an economy’s debt burden to rise.
- As long as increases in fixed asset investment continue to be Beijing’s main lever for maintaining politically acceptable growth rates much above 2 to 3 percent, there is no way to prevent the country’s debt burden from ballooning.
For further details see:
The Only 5 Paths China's Economy Can Follow