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There will be no hard landing in China, says … China. In an interview given Saturday...

There will be no hard landing in China, says … China. In an interview given Saturday following the G-20 conference, finance minister Lou Jiwei pointed to 8% growth in service industry electricity usage as evidence the country is successfully transitioning away from a manufacturing- based economy. Lou also claimed China is committed to growth friendly tax reforms and initiatives to cut back on "paperwork and application requirements for Chinese businesses."
Comments (2)
  • wyostocks
    , contributor
    Comments (7619) | Send Message
     
    So it has been said, so it shall be.
    He also said that other countries should fix their own economies and stop worrying about and telling China how to fix its economy.
    21 Jul 2013, 11:35 AM Reply Like
  • CautiousInvestor
    , contributor
    Comments (3017) | Send Message
     
    While an interesting fact, the immediate threat to China's economy is growth in the unregulated shadow banking system, non-performing loans, rapid expansion in credit and the need to constantly roll over loans. Then we have empty cities, useless infrastructure and excess capacity funded largely by the rapid expansion in credit. Lastly, we have a personal savings rate of 30% of PDI which thwart efforts to move to more of a consumption driven economy. I don't think these problems can be solved through increased electricity consumtion.
    21 Jul 2013, 11:55 AM Reply Like
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