After years of double-digit growth, China’s economy is slowing down a tidbit. About time, tells economic analyst Arthur Kroeber in his research paper. Broccoli in stead of cheesecake.
Arthur Kroeber, managing director of GK Dragonomics, a Beijing research company, explained the predicament by way of a food analogy. China’s hefty investment over the past decade has been akin to a fattening diet of cheesecake, he wrote in a research note this week. “This was all right for a while, but now the risk of arterial sclerosis looms,” he said.
It is time to shift to a corrective regimen of broccoli – that is, a more efficient use of capital that engenders a rise in consumption. “It is not as tasty, but much healthier in the long run. If China can stick to its diet, it will be an impressive economy in a decade’s time. If not, it might end up looking like Japan today, only poorer.”
- China in numbers: a tough call – Arthur Kroeber (chinaspeakersbureau.info)
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