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News Link • China

CHINA CRASH 2012: Here's How It's Finally Happening This Time

•, Mamta Badkar
 They warned that the centrally planned, export-dependent economy, could not sustain itself year after year.

But through multiple crises, China has motored along, lifting hundreds of millions of people out of poverty in the process.

But things appear to be different this time. Corporate profits are tanking, and the Shanghai Composite is at the same levels it was during the depths of the 2008-2009 crash. A hard landing has hit the corporate sector.

And many are questioning whether policymakers are really in control of the slowdown this time, or if the economy is in fact heading for a hard landing i.e. four straight quarters of below five percent growth.
Chinese leaders are on notice.

A recently announced infrastructure stimulus showed that Beijing is starting to worry about the depth of its economic slowdown.

But it also signaled that its economic rebalancing has been put on hold.

How did China get to this point? When did exports and infrastructure start driving the economy? And what is driving bearish sentiment now?

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