::PROPERTIES: :ID: 5440B722-5661-4B1A-99D2-B6D48481DDA2 :END:

Potential measures of China’s decline:

• purchasing power is not as high even if its a huge economy
• incomes are not rising as fast as they did before
• model of property-driven growth

influences

• China’s working age productivity is shrinking
• China’s total productivity has decreased
• ROI from Chinese companies have declined
• …and thus foreign direct investment is reversing

bailouts

Unlike the US financial crisis, when big companies go bust, China didn’t bail out companies except to finish already-purchased homes.

questions to think about

• how the political system and economy relationship
• what’s distinctive abut China’s system
• how the political system enables and constrains
• how political institutions affect banking, governance, and stability
• why did China loose momentum
• what are the best estimates?