Fixed-asset investments still driving economy, but not sustainable
Feb 07, 2014 | 12:40 PM
SHANGHAI The correlation between Chinas growth in gross domestic product (GDP) and steel production suggests that investments, especially fixed-asset investments, still play a large role in the countrys economy. But this investment-driven economy isnt sustainable.
Chinas industrial sector, particularly its steel industry, has been boosted by government initiatives over the past few years. While a lack of supportive policy pushed the countrys purchasing managers index (PMI) into contraction during the September 2012 quarter, a "mini-stimulus" from the countrys new leadership in 2013 brought an improved performance.....
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