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What Drives the Chinese Economy?

There are three main drivers of the Chinese economy. In the first half of 2009:

  • Fixed asset investment has been huge in the public sector.
  • Domestic consumption has not been as high as usual.
  • While exports have been a drag on the Chinese economy

The Stone McCarthy analyst also notes that country wide statistics in China are now better since they are not just aggregating provincial statistics. The provinces don’t report accurately since they are trying to please their political bosses.


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