As Xi visits the United States, China’s economy is at a tipping point
China has narrowly escaped major financial crises for over two decades. But the good times may soon be over — and not because of the recent stock market crash.
The roller coaster of Chinese stock prices this summer has triggered debates about whether China now faces a serious economic crisis. The Telegraph compared China’s equity bubbles to the situation that led to the 1929 Great Depression. The New York Times and Fortune, on the other hand, have argued that the equity bubbles are merely false alarms, and fears about China are overblown.
In the short term, the latter argument is more convincing: China’s equity crisis has affected fewer than 15 percent of Chinese households.… Seguir leyendo »