“Couple potential (and ongoing) unrest regarding further urbanization with a lagging economy, an unbalanced banking sector and dwindling exports and you have a recipe for further questions about the Chinese Miracle. The biggest gamble of all may be the ChiComs’ recent announcement that they intend to allow yet more free-market activity to take place. At what point do market forces begin to overwhelm ChiCom command-and-control facilities, especially when it comes to high-end monetary economy where the power resides? For all these reasons, we would imagine that even if China escapes a hard landing for now, there is one in store sooner or later …”
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