Yet, his vision of transformation is one where China grows past its current problems by grafting new nodes of growth onto the existing system. President Xi is aware of the challenges China faces. Since 2008, Chinese banks have lent an amount, about the size of the entire banking system of the US. Therefore, what worries experts is the speed of the accumulation of debt. Today the debt/GDP ratio of China stands at ~270%, massive yet comparable to the US. The system kept lending and the recession skipped the country. But did not all economies across the world do that? Whereas most governments spurred growth by increasing their spending, the banks did the heavy lifting in China. To relieve itself of the topples of the recession, China unleashed a huge economic stimulus. In 2008, Chinese exports started staggering. The Chinese economy is no longer driven by exports. I will share a few insights I have developed on the Chinese economy from the book, many of them verbatim. Given the limited nature of such studies, this book is a must-read for all China buffs. Thanks to this, he is able to present a readable and authoritative description of an otherwise Delphic system. Dinny McMahon's expertise in the Chinese juggernaut comes from his ten years in China as a financial journalist.
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