China’s Economy: Is There Something We Are Missing?

China’s Economy: Is There Something We Are Missing?
People are reflected on a glass case displaying a poster featuring a 100 dollar Hong Kong colonial bank note in Hong Kong on March 2, 2016. AP Photo/Kin Cheung
Valentin Schmid
Updated:

On the surface, things are quite straight forward: China has been growing fast thanks to a historic expansion in debt and recently failed to transition its economy from investment in things that don’t move to consumers who move around and buy stuff.

It has taken the market quite some time to come to that conclusion as most people thought the central planners in Beijing were invincible. Now, the sentiment is more negative, despite another ramp up in debt and investment to stabilize the economy in early 2016.

(Macquarie)
Macquarie
Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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