The World's Best Thinking About China. Top China Experts' Analyses Exclusively on CHINADebateTV
2. Key economy problem
Pieter Bottelier, SAIS
05/18/2016
What Drives China's Debt?
Key economic problem: efficiency of
investment is declining.
1. Significant excess capacity in heavy industry (e.g. steel, cement, shipbuilding)
2. Overleveraging (especially by local governments and corporations)
3. Capital outflows, probably including some “capital flight”