Mike (Mish) Shedlock | Jan 17, 2020 02:09AM ET
China posted another quarter of 6% annualized GDP. That's the slowest in 29 years.
The Financial Times reports China GDP grows at slowest pace in 29 years
China’s economy last year grew at the lowest rate since 1990 while the country’s birth rate fell to a record low, highlighting the domestic challenges facing Beijing despite a truce in its painful trade war with the US.
Also note that State Grid, China's power utility, forecasts a dramatic fall in growth by 2025 with a risk of falling to 4%.
Michael Pettis at China Financial Markets has a pertinent series of Tweets , summarized below. Emphasis in Tweet 3 is mine.
Follow-Up Q&A
Zombification of China
In November of 2019, Pettis commented that China, like Japan in the 1990s, Will Be Dominated by Huge Zombie Banks
"Having the smaller banks absorbed by the bigger ones, which seems to be Beijing's new strategy, will mean that China, like Japan in the 1990s, will be dominated by huge zombie banks," says Michael Pettis.
Pettis is also fond of saying that China's GDP is overstated because of malinvestment. I concur 100%. But the same applies to the US, EU, Japan, everywhere.
The struggle to hit meaningless growth targets is accompanied with struggles to hit equally useless, and even damaging inflation targets.
This is all a matter of degree: So if China's Growth Much Worse Than Reported, What About the US?
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