The Economist puts China in the spotlight once more, and not only for its legacy of malinvestment. As it stands, Economists and policymakers around the world want China to consume more, in return for a reduction of its dependence on investment. The overall conception is that no economy that invests so heavily can possibly invest it all wisely. Therefore, economists now worry about a widespread misallocation of capital, or “malinvestment”. But what’s more is, some of China’s consumption is also a bit questionable – definitely notwithstanding their abundance of fake goods.
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