Beijing now overdependent on exports, Michael Pettis notes - Traders Union
Beijing now overdependent on exports, Michael Pettis notes - Traders Union
Source: Traders Union
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DW NOTE
China's export share of GDP hit 22% in the second quarter — a level not seen since 2007, before the global financial crisis ended the old growth model. Pettis has been correct on China's structural imbalances for two decades. The difference now is that the rest of the world is running larger deficits, raising rates, and losing appetite for absorbing Chinese overcapacity. Beijing is exporting into a closing door.