Since 2008, the growth of the Chinese economy has been financed by ever-increasing debt. And the increasing debt burden would threaten the stability of the Chinese economy. On the other hand, the Chinese state is responding to the growing mistrust of its own citizens by imposing severe restrictions on capital exports. Beijing must decide between stabilizing the Chinese financial markets and promoting economic growth as they will not be achieved at the same time. Find out more about China's failed deleveraging and its implications for OECD countries.
Heribert Dieter was Visiting Professor and Director of Policy Research, Asia Global Institute.
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