The End of the Con. The days of easy growth are gone, meaning the government must address problems linked to low household income and excess investment By Andy Xie China's economic management overly relies on juicing up confidence and encouraging speculation on the expectation of a brighter future.
The demand from the confidence game leads to excessive demand for debt to finance holdings of speculative assets like land and commodities. Properties under construction, sold vacant properties and the inventories of commodities like steel and non-ferrous metals may exceed 100 percent of GDP at current market value. Household Income and its Distribution in China. Civil Law Class.