Turning around a Chinese slowdown

It seems even cheap capital is not enough to tempt Chinese borrowers to spend as they used to. But another round of government infrastructure investment could shore up growth in this politically critical year.

Perceptions have certainly changed a lot in the last few months. As recently as three years ago there were so few analysts who were sceptical about the sustainability of Chinese growth that we rarely disagreed among ourselves. Now, however, the group of sceptics has become large enough that there are serious disagreements among us as to what will happen next.

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