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Thursday, October 15, 2015
Is China heading for "Slow Growth" like Japan has for 20 years?
While rapid investment has turned
China into one of the 21st century’s fastest-growing major economies, it
also led to overproduction in industries from steel to cement and
sparked concern that some projects will fail to generate the returns
needed to service a record build-up of debt. China’s ratio of investment
to gross domestic product has exceeded that of Japan in the late 1980s,
just before a bursting of that nation’s real-estate bubble ushered in
more than two decades of anemic growth, according to the International
Monetary Fund.
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