Pekings Wachstumsmodell ist immer noch kaputt: Und es schadet China und dem Rest der Welt

[Excerpt from essay by Dinny McMahon, head of Markets Research at Trivium China and the author of *China’s Great Wall of Debt*.]

Rather than redistributing wealth so people can spend more now, Beijing wants to focus on creating new wealth in the hope that it spurs greater consumption in the future.

In the long term, this approach may lead to a more balanced growth model. But in the face of weak domestic demand from the aftermath of the deflated property bubble, China is ramping up its exports even more in the short term. This not only delays China’s own pivot toward consumption; it also promises wealth destruction for other countries trying to compete with China or find their place in the global economy.