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Porter of the NYT cites experts who point to the high investment rates of 50% and lower household consumer spending of 35% as very different from the 35% for investment and 50% for consumer spending that happened when Japan, Tawan and South Korea got to the level of development where China is in 2015. A large part of this is because of the state driven model pursued by the Communist Party in China that puts investment by state run enterprises ahead of consumers and savers.
Grouped Articles
Political Risks May Foil Economic Reform in China
New York Times 08.25.2015
The Problem With China’s Economic Growth
WSJ 07.17.2017
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