What China’s Online Shopping Craze Says About Its Bubble Economy
carnegieendowment.org
carnegieendowment.org
There is no doubt that the speed of Chinese emergence means bubbles were created and will be created, and will pop along the way.
But the Chinese economy is not a bubble.
The US did not have a smooth ride to the top, either.
One conveniently forgets Japan's lost decade after a very similar credit bubble pop.
China is not the US. Japan is not the US.
US is US. There are no equals.
edit: What evidence do you have to counter the trillion dollars of debt that China has been accumulating? How is this not different from Japan's credit bubble of the late 80s that subsequently led to a 20 year stagnation?
We seem to have a very different definition of what a credit bubble is, you seem to completely ignore the huge amount of credit lent out to state owned assets, banks which in turn have extended credit to allow massive speculation on real estate? How do you account for the ghost cities where speculation has made prices out of touch with reality? Are these not tall tale signs that there is something much more startling being covered up? Which government has a history of fiddling with numbers and refuse to allow international audits? Who believes that China will surpass the USA? Apparently a lot of people believed Japan will surpass the USA shortly before the credit bubble popped. You are doing a poor job of arguing that this isn't another credit bubble.
What is the evidence? The actual economy has been massively growing for 40 years. That's not a bubble.
Again, even whether there may be a credit bubble that is not the same as claiming that the Chinese economy is a bubble.