Michael Pettis: Investor concerns mount over prolonged consumption slump and business competition pressure - Traders Union
Michael Pettis: Investor concerns mount over prolonged consumption slump and business competition pressure - Traders Union
Source: Traders Union
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DW NOTE
Michael Pettis has spent two decades documenting how Chinese overcapacity exports deflation to trading partners who lack the political will to impose reciprocal tariffs. The consumption slump he describes is not a bug in the growth model — it is the model. You cannot run 35% of GDP as fixed-asset investment, suppress household income to 42% of output, and expect domestic demand to absorb what the factories produce. The business competition pressure is just the rest of the world finally noticing.