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International Law

: Asia Business Intelligence

Can China Lead a Recovery? Right...

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More pie-in-the-sky dreams about a consumer economy in China. Note this paragraph, buried in the article:

It remains unclear whether the Chinese have abandoned their traditional caution [to spend]. "Over the past decade or so, the growth of China's household consumption has been outpaced by fixed investment growth and exports, and consumption as a percentage of GDP is low and has been on the decline," said Morgan Stanley analysts Qing Wang and Steven Zhang in a report last month.

The topic is a long-standing Western fantasy about which I have written often over the past 10 years on this blog and will not spend any more time on.

Full post as published by Asia Business Intelligence on October 06, 2009 (boomark / email).

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