Chinese demand: real or fabricated?
We’ve consistently warned about the risks of continued reliance on investment to compensate for scattered external demand for China’s exports. It’s just that the government doesn’t have a viable way to expedite necessary and sufficient consumption-led growth that will allow them to rebalance their economy. And because of this, they are even worse off, i.e. they are more heavily dependent on debt and investment to drive growth than they were when the global credit crisis struck 3 and a half years ago.
No new recommendations or adjustments at this time.