SNS Subscriber Edition Volume 18, Issue 33 Week of August 31, 2015
In This Issue
Feature: SNS Asia Letter, Q4 2015: China Inflection Point
Risk Off, Panic On
China Inflection Point
Japanese Winners and Losers in China
Hon Hai Evolves with China & India
Export Finance: Airbus vs. Boeing
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It has been a long time since the Chinese leadership traded in Marxist-Leninist dogma for practical economic policies, and most of the growth potential inherent in a poor nation with a suppressed entrepreneurial culture has been exhausted. Wages are no longer competitive. Large-scale commodity industries have been overbuilt. Government subsidies and debt financing have been excessive. An economic structure dominated by state-owned enterprises has outlived its usefulness. Financial stimulus is not working very well anymore. The natural environment has been wrecked, and the subordination of safety to growth has led to carelessness, corruption, and disaster. …So, how bad can things get in China?
