Candriam's Boudewijns: China's stunning growth has created many imbalances

Reform a 'gargantuan' task

The Chinese leadership has had to perform a complex balancing act between urgently needed and promised reforms to rebalance the economy, while sustaining growth at a level that keeps unemployment in check and creates the necessary room for reforms in the first place.

It is no secret the stunning growth experienced by China over the last 30 years has created many imbalances.  Global watchdog warns China at growing risk of banking crisis This predominantly investment and export-driven growth has resulted in an overextended investment-to-consumption imbalance, a massive oversupply of most manufactured products, a severe resource misallocation and low energy efficiency, a growing debt pile at the corporate level, rising income inequality and a huge environmental burden.  A gargantuan reform task for any government. But while macroeconomics have ...