China’s recovery had nothing to do with stimulus. It was simply a matter of greater momentum going into the recession. When you’re growing at better than 10%, and the rest of the world hits a recession, you slow down to 5 or 6%, but that’s still not a recession.
Well said.
China’s in deep trouble, and the problem with spending on state-run industries, is that you can’t dispose of malinvestment.
That’s the purpose of recessions to destroy bad investments. China’s pumping them up with money which will hurt them in the long run.