33 min
Can China Avoid the Japan Trap? Street Signals
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- Investing
Similar to Japan in the 1990s, China faces twin headwinds of excessive debt deleveraging and demographic deterioration, with the addition of a multi-year pandemic and its aftermath making these already considerable burdens even more challenging. Can the world's once-reliable engine for growth avoid a similar fate of disinflation and relative decline? The hurdles are high but the comparison is not entirely apples-to-apples. China's fate is not sealed, possessing key advantages in rebuilding their post-COVID economy. Ramu Thiagarajan, a senior investment advisor for State Street, and Yuting Shao, one of our emerging market strategists in Asia, join the podcast to discuss a recent paper outlining the steps China will likely need to consider in sidestepping the looming threats of debt and deflation.
See omnystudio.com/listener for privacy information.
Similar to Japan in the 1990s, China faces twin headwinds of excessive debt deleveraging and demographic deterioration, with the addition of a multi-year pandemic and its aftermath making these already considerable burdens even more challenging. Can the world's once-reliable engine for growth avoid a similar fate of disinflation and relative decline? The hurdles are high but the comparison is not entirely apples-to-apples. China's fate is not sealed, possessing key advantages in rebuilding their post-COVID economy. Ramu Thiagarajan, a senior investment advisor for State Street, and Yuting Shao, one of our emerging market strategists in Asia, join the podcast to discuss a recent paper outlining the steps China will likely need to consider in sidestepping the looming threats of debt and deflation.
See omnystudio.com/listener for privacy information.
33 min