10.28.2013 18:40

Pick Your Poison

Officials are showing little enthusiasm for dealing with the property bubble, and if they do not act, market forces will do it for them
By Andy Xie

GDP targeting no longer serves a good purpose. It sends a dangerous signal for resisting economic restructuring and sustaining speculation. Continuation of GDP targeting would lead to an economic hard landing and massive non-performing loans.

The recent upturn in GDP growth is not good news for China. It has occurred by further increasing the economic imbalance and prolonging speculation. It merely delays the inevitable economic restructuring and increases its final cost.

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