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20-01-2014, 03:13 PM
(This post was last modified: 21-01-2014, 09:39 AM by CityFarmer.)
(20-01-2014, 02:30 PM)grubb Wrote: If China is to rebalance towards a consumption driven economy, SOEs must take the hit. Rebalancing is essential because the end of the growth model is typically characterized by runaway credit and value destroying investment (think Japan, Brazil). Saying that SOEs should enjoy preferential rates is like saying households should continue subsidize the state sector. A rebalancing will never occur in that case.
I concur. That is the big picture I got. The rebalancing is on the way, and well-planned.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡