Threats facing the Chinese economy
Despite an ever growing debt, China's economy has been steadily expanding in size and strength. The question is, for how much longer?According to a report, titled 'R.I.P Chinese Exceptionalism?' published in Project Syndicate, authored by former chief economic advisor to the Indian Government- Arvind Subramanian, and Director of JH Consulting- Josh Felman, China's growing economy has, over the years, disobeyed a range of economic laws. One of them is the Stein's Law, according to which, something which cannot go on forever, will, eventually, come to a stop. China's debt accumulation, however, does not seem to be slowing down.Statistics from the International Monetary Fund indicate that China's corporate, government, and household debt has added around USD 23 trillion in the past decade, while its debt-GDP ratio has increased by around 100 percentage points. Those are figures border-lining financial crisis.Although China has used some of that debt to enhance industries and ...