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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”

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