China Stimulated Its Economy Like Crazy After The Financial Crisis ...

And Now The Nightmare Is Beginning

MAMTA BADKAR

An excellent piece by Jamil Anderlini in today's Financial Times looks at how excess capacity and subsidies are threatening specific industries and imperiling the Chinese economy.

A major contributor to this excess capacity problem: China's investment-led growth-model role in the nation's excess capacity problem.

This IMF chart shows the contribution of investment to GDP growth from 2000 on.

IMF
China's massive 4 trillion yuan stimulus, unleashed after the Lehman Crisis to stem massive unemployment, only made the excess capacity problem worse.

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