Michael Pettis on China's overinvestment paradox, and the Japan-style reckoning still to come - Top1000funds.com
Michael Pettis on China's overinvestment paradox, and the Japan-style reckoning still to come - Top1000funds.com
Source: Top1000funds.com
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DW NOTE
Pettis has been making the same argument since 2013: China's investment-to-GDP ratio is unsustainable, rebalancing toward consumption is inevitable, and the alternative is a Japan-style balance sheet recession. Thirteen years later, investment is still 42% of GDP and household consumption is still 38%. At some point "still to come" becomes the prediction.