Monday, October 25, 2010

China trying to avoid becoming Japan

Article is short on details, unfortunately.

China, Trying to Avoid Japan's Mistakes, Is Actually Following Same Path
Chinese officials face a major dilemma. The economy has been overheating and inflation is picking up. Real interest rates are far too low, by any standard. As a result, overinvestment in construction, manufacturing, and infrastructure are exacerbating massive overcapacity. Chinese officials understand that this accumulation of overcapacity is becoming a major threat.

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